Smartphone shipment forecast for 2021 lowered due to chip shortage, Counterpoint says

Some smartphone makers are now saying they only receive 70% of the requests.   | Photo Credit: Reuters

Smartphone shipments in the second half of 2021 is expected to grow by only 6% annually, down from the earlier forecast of 9%, research firm Counterpoint said on Thursday.

(Sign up to our Technology newsletter, Today's Cache, for insights on emerging themes at the intersection of technology, business and policy. Click here to subscribe for free.)

Total units shipped in the second half of 2021 is now expected to grow to 1.41 billion units from the earlier guidance of 1.45 billion units, mainly due to the continuing semiconductor shortage that is affecting over 90% of the smartphone industry, the research firm noted.

Computer chips that form an essential part of all electronics, have been in short supply since the last quarter of 2020. The shortage continues despite foundries running at full capacity for several quarters, affecting smartphone companies more than ever, Counterpoint added.

Counterpoint had earlier estimated that the industry was set for a strong rebound this year after COVID-19 had hit the market hard in 2020. However, some smartphone OEMs and vendors are reporting that they only received 80% of the requested volumes on key components during the second quarter of 2021. Some smartphone makers are now saying they only receive 70% of the requests, the research firm noted.

The shortage of application processors, one of the most crucial elements in smartphones, was triggered by low yield rates in newly established fab lines. Major vendors like Qualcomm and Mediatek rely on these foundries, and manufacturing problems result in fewer processors supplied which in turn affects smartphone OEMs.

“The semiconductor shortage seems to affect all brands in the ecosystems. Samsung, Oppo, Xiaomi have all been affected and we are lowering our forecasts. But Apple seems to be the most resilient and least affected by the AP shortage situation," said Tom Kang, Research Director at Counterpoint Research.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Dec 1, 2021 12:46:19 AM |

Next Story