Trendforce: Global Smartphone Market to Reach 1.36 Billion Units in 2021 as Samsung regains #1 position
Samsung Electronics Co. is expected to remain the world’s top smartphone producer this year, according to a report by according to market researcher TrendForce. However, the company’s market share is likely to decrease as other brands will ramp up production with the recovery of mobile demand.
The top six smartphone brands ranked by production volume for 2020, in order, are Samsung, Apple, Huawei, Xiaomi, OPPO, and Vivo. The most glaring change from the previous year is Huawei’s market share.
Thanks to the Chinese government’s aggressive push for 5G commercialization in 2020, global 5G smartphone production for the year reached about 240 million units, a 19% penetration rate, with Chinese brands accounting for almost a 60% market share. While 5G will remain a major topic in the smartphone market this year, various countries will also resume their 5G infrastructure build-out, and mobile processor manufacturers will continue to release entry-level and mid-range 5G chips. As such, the penetration rate of 5G smartphones is expected to undergo a rapid increase to 37% in 2021, for a yearly production of about 500 million units.
Global smartphone production was projected to increase 9 percent on-year to 1.36 billion units in 2021. Trendforce predicted that device replacement demand and growth in emerging markets will lead to gradual recovery of the smartphone market.
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TrendForce indicates that smartphone brands’ recent bullish outlook towards the 2021 market and their attempt to secure more semiconductor supplies by increasing their smartphone production targets can potentially lead these brands to overbook certain components at foundries. However, smartphone brands may adjust their component inventories from 2Q21 to 3Q21 and reduce their semiconductor procurement activities if actual sales performances fall short of expectations, or if component bottlenecks remain unresolved, leading to a widening inventory gap between bottlenecked and non-bottlenecked parts. Even so, TrendForce still forecasts an above-90% capacity utilization rate for foundries in 2021.
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References:
http://www.trendforce.com/presscenter/news/20210105-10630.html
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Smartphone shipments fell to a 10-year low in 2022:
According to Canalys, last year, global shipments were 11% lower compared to 2021, dipping below 1.2 billion. In Q4, shipments were down 17% year-on-year.
“Smartphone vendors have struggled in a difficult macroeconomic environment throughout 2022,” said Runar Bjørhovde, Canalys research analyst, who highlighted that it marks the worst Q4 and annual performance in a decade. Retailers in Q4 were “highly cautious” about taking on new inventory, a contributing factor to the low shipment volume, he added.
The preliminary figures, published on Tuesday, claim Apple took top spot from Samsung at the end of 2022; the iPhone maker achieved a market share of 25 percent in Q4, compared to its rival’s 20%. In Q3, it was Samsung enjoying the lead with a market share of 22 percent to Apple’s 18%.
Unfortunately for OEMs, the outlook this year for the smartphone market isn’t much better, with Canalys predicting flat to marginal growth.
“Though inflationary pressures will gradually ease, the effects of interest rate hikes, economic slowdowns and an increasingly struggling labour market will limit the market’s potential,” warned Canalys research analyst Le Xuan Chiew.
“This will adversely affect saturated, mid-to-high-end-dominated markets, such as Western Europe and North America,” he continued. “While China’s re-opening will improve domestic consumer and business confidence, government stimuli are only likely to show effects in six to nine months and demand in China will remain challenging in the short term. Still, some regions are likely to grow in the second half of 2023, with Southeast Asia in particular expected to see some economic recovery and a resurgence of tourism in China helping to drive business activities.”
https://telecoms.com/519452/smartphone-shipments-fell-to-a-10-year-low-in-2022/