Smartphone shipments set to grow in 2021 despite supply pressure

Smartphone shipments to reach 1.4 billion units this year, research firm Canalys estimates   | Photo Credit: Reuters

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Smartphone shipments across the globe is expected to grow this year despite shortage in component supply.

Research firm Canalys estimates shipments to reach 1.4 billion units this year, growing 12% from the previous year.

"In some parts of the world, people have been unable to spend money on holidays and days out in recent months, and many have spent their disposable income on a new smartphone instead," said Ben Stanton, Canalys Research Manager.

The research firm also believes that a strong momentum behind 5G handsets and online surge in orders will drive smartphone shipments.

Also Read | 5G phones to boost the global smartphone shipments this year

5G handsets contributed 37% of global shipments in Q1, and is expected to account for 43% for the full year shipping more than 600 million units, according to Canalys.

However, it notes that component supply crunch will emerge as the new bottleneck for the smartphone industry.

The industry is struggling with semiconductor supply shortage, and has planned for ways to cope up with the supply crunch, Canalys said.

It noted that in recent months, vendors redirected some allocation to other regions due to the COVID-19 outbreak in India.

As the world returns to normal, vendors will first turn to regional prioritisation, focusing the flow of units into lucrative developed markets such as China, the US and Western Europe at the expense of Latin America and Africa.

They will also push a greater allocation of units into fast-activation channels, such as carriers, and fewer into distribution and the open market, Canalys said.

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Printable version | Jul 27, 2021 12:22:56 AM |

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