A recent report revealed that the worldwide smartphone industry will grow this year. The predicted growth in shipment is almost 12% with overall sales of 1.4 billion units. The increase in smartphones shipment indicates that there is a strong market comeback from last year. In 2020, handset shipments decreased by 7 percent due to serious market constraints created by the pandemic of coronavirus. However, the main cause of the fall in smartphone sales was the supply of components, now supplying components problems will be handled this year as the world is recovering and coming out of the pandemic with vaccinations.
Smartphones Shipment Expects to Grow 12% in 2021
However, the supply of components will still limit the rise in smartphone sales this year. As the world is currently suffering from a major shortage of semiconductors and related components.
“The resilience of the smartphone market is simply incredible,” says Canalys Research Manager Ben Stanton. “The 5G devices, which made for 37% Q1 shipments and rise the shipment this year, we predict 43% increase in smartphone shipment in the next three quarters (610 million units)”. This is driven by intense price competition amongst smartphone manufacturers with various compromises on other features to fit 5G in the device at a reasonable price.
Nicole Peng, Canalys VP of Mobility, said: “The price is the other perspective as key elements such as chipsets and memory increase the device price, smartphone makers have to decide whether to bear that cost or pass it on to users.” The report also claimed that the pandemic had even brought irreversible market changes that had transformed businesses.
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