Canalys 2Q-2021 smartphone rankings show big gains for Xiaomi and OPPO

Telecom, IT and cloud market research firm Canalys, said that global smartphone shipments increased by 12% in the second quarter of 2021.   Samsung still maintains its position as the world’s number one with a market share of 19%. Xiaomi’s mobile phone sales surpassed Apple’s and rose to the second place in the world for the first time, with a share of 17%. Apple ranked third with 14%. OPPO and Vivo ranked fourth and fifth in the world, with a market share of 10%.

Xiaomi’s growth rate is as high as 83%, making it the top five mobile phone brand with the fastest growth rate in market share.  Lei Jun, the founder and CEO of Xiaomi, sent three consecutive Weibo messages to express his congratulations to Xiaomi, and at the same time released the “Open Letter to Xiaomi Students.” Lei Jun said that Xiaomi’s becoming the second ranked global smartphone vendor is a major milestone in the history of Xiaomi’s development.

In the third quarter of 2014, Xiaomi entered the top three in the world for the first time, and then encountered huge difficulties, and soon fell out of the top five in the world. In 2020, the launch of Xiaomi Mi 10 series will fully launch the development of Xiaomi mobile phones. In the high-end journey, in the third quarter of the same year, Xiaomi returned to the third place in the world. Only two quarters later, Xiaomi was promoted to the second place in the world.

Lei Jun also said that “the second in the world” is a major victory for Xiaomi’s strategy. In August last year, Xiaomi established its core strategy for the next ten years-mobile phone X AIoT, once again clarifying the core position of the smartphone business, progressing to promote intelligent interconnection, and the AIoT business will build a smart life around the core business of mobile phones. At the same time, it has established the “three iron laws” that will never change: technology-oriented, cost-effectiveness-oriented, and making the coolest products.

About Xiaomi:

Xiaomi is an electronics company based in Beijing, China.  It was founded by Lei Jun in April 2010, and in 2014, Xiaomi was the largest smartphone company in China. Today, Xiaomi is one of the top five smartphone vendors in the world.

The “MI” in their logo stands for “Mobile Internet.” It also has other meanings, including “Mission Impossible”, because Xiaomi faced many challenges that had seemed impossible to defy in our early days.

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Meanwhile, Canalys said that OPPO ranked first among Android smartphone manufacturers.  In addition to launching 5G phones in the full price range to meet the different needs of consumers, OPPO has been actively taking the lead in applying new technologies to its latest models.

Canalys wrote that in Middle East and Africa, OPPO has climbed to fourth place in market share with a 106% year-on-year growth. The United Arab Emirates and Saudi Arabia have been at the forefront of this rise, witnessing a 196% and a 218% year-on-year growth respectively which was attributed to OPPO’s innovative product offering and strong customer service. In addition, OPPO saw a year-on-year growth of 79% in Egypt.

Ethan Xue, President of OPPO MEA said, “We are proud to see our innovative products and customer-centric approach being well received and reflected in these promising figures. Our growth in the MENA region is phenomenal and illustrates the strong customer base we have that support us and understand our brand mission, technology for mankindkindness for the world. At OPPO, we continue to push the boundaries and our growth only serves to motivate us even more to offer our customers the best possible products at competitive prices.”

The main proponent of the brands growth is strong product launches that closely align with the evolving demands of smartphone users. Earlier this month, OPPO launched the anticipated Reno6 series, comprising of three variations, the Reno6 Pro 5GReno6 5G, and the Reno6 Z 5G that have all been masterfully designed for trendsetting individuals, game enthusiasts and the young at heart. From stunning design details to powerful features, the Reno6 series is already proving to be popular in the region, with a 300% pre-order increase compared to its predecessor, solidifying the demand for the technology brand in MENA.

About OPPO:

OPPO is headquartered in Dongguan, China an has been a leading global technology brand since 2004, dedicated to providing products that seamlessly combines art and innovative technology.

OPPO says they’re on a mission to building a multiple-access smart device ecosystem for the era of intelligent connectivity. The smartphone devices have simply been a gateway for OPPO to deliver a diverse portfolio of smart and frontier technologies in hardware, software and system. In 2019, OPPO launched a $7 Billion US Dollar three-year investment plan in R&D to develop core technologies furthering design through technology.

For the last 10 years, OPPO has focused on manufacturing smartphones with camera capabilities that are second to none. OPPO launched the first mobile phone, the Smile Phone, in 2008, which marked the launch of the brand’s epic journey in exploring and pioneering extraordinary technology. Over the years, OPPO has built a tradition of being number one, which became a reality through inventing the world’s first rotating camera smartphone way back in 2013, launching the world’s then thinnest smartphone in 2014, being the first to introduce 5X Zoom ‘Periscope’ camera technology and developing the first 5G commercial smartphone in Europe.

OPPO is currently ranked as the number four smartphone brand globally. OPPO brings the aesthetics of technology of global consumers through the ColorOS system Experience, and Internet service like OPPO Cloud and OPPO+.

OPPO’s business covers 40 countries with over six research institutes and five R&D centers across the world, from San Francisco to Shenzhen. OPPO also opened an International Design Centre headquartered in London, driving cutting edge technology that will shape the future not only for smartphones but for intelligent connectivity.

References:

https://min.news/en/tech/5f2410bda155bbec25c819b98c454623.html

https://www.prnewswire.com/news-releases/oppo-ranked-first-in-global-5g-smartphone-shipments-among-android-manufacturers-301391332.html

NEW for 3Q2021 Rankings:

https://techblog.comsoc.org/2021/10/16/canalys-global-smartphone-shipments-fell-6-in-3q-2021-samsung-still-1/

 

IDC: Global Smartphone Shipments +7.4% in 2021, led by Emerging Markets

IDC forecasts that global smartphone shipments are set to increase by 7.4% this year, marking a return to growth after the Covid-19 pandemic hit the industry in 2020, according to new analyst figures. IDC estimates worldwide smartphone shipments at 1.37 billion units in 2021, which represents “minimal growth” compared with pre-pandemic 2019. Its data for 2019 shows shipments of 1.372 billion, then a 5.9% decline to 1.29 billion the following year. Making comparisons with 2019 (pre-COVID) gives a more accurate picture of the state of the market.

The 7.4% growth can be attributed to a healthy 13.8% growth from iOS devices combined with 6.2% growth from Android. Although COVID-19 drastically impacted 2020 shipments, 2021 shipments have managed to display minimal growth compared to 2019 (pre-pandemic) volumes, giving us a more accurate view of the state of the market. The world’s largest markets – China, the United States, and Western Europe – will still be down from 2019, but growing markets such as India, Japan, the Middle East, and Africa are fueling the recovery.

“The smartphone market was better prepared from a supply chain perspective heading into 2020 given almost all regions were expecting to grow and vendors were preparing accordingly,” said Ryan Reith, group vice president with IDC’s Mobility and Consumer Device Trackers. “2020 was a bust due to the pandemic but all of the top brands continued forward with their production plans with the main difference that the timeline was pushed out. Therefore, we are at a point where inventory levels are much healthier than PCs and some other adjacent markets and we are seeing the resilience of consumer demand in recent quarterly results.”

5G shipments continue to be a primary driver of 2021 growth as both vendors and channels focus on 5G devices that carry a significantly higher average selling price (ASP) than older 4G devices. The ASP of a 5G smartphone will reach $634 in 2021, which is flat from $632 in 2020. However, 4G devices continue to witness a massive price decline as the ASP drops to $206, representing a nearly 30% decline from last year ($277). As a result, the total 5G shipment volume will grow to 570 million units, up 123.4% from last year.

China will continue to lead the smartphone market with 47.1% of the 5G global market share, followed by the USA at 16%, India at 6.1%, and Japan at 4.1%. By the end of 2022, 5G units are expected to make up more than half of all smartphone shipments with a 54.1% share.

“Despite the ongoing issues surrounding the pandemic and the Delta variant, consumers are continuing to upgrade to more premium smartphones this year,” said Anthony Scarsella, research director, Mobile Phones at IDC. “Premium smartphones (priced at $1000+) continued to grow in the second quarter as the segment displayed 116% growth from last year. Moreover, ASPs across the entire market climbed 9% as buyer preferences trend towards more costly 5G models than entry-level devices.”

Closing Comment:  We don’t share IDC’s enthusiastic forecast for 5G smartphones, because they do not support any new features, applications or use cases without a 5G SA core network.  As 95% of deployed 5G networks are NSA (requiring a 4G anchor/core network), 5G smartphones that use 5G NSA networks are only a little faster [1.] than 4G-LTE phones with no noticeable improvement in latency. Also, there’s no roaming, so users must fall back to 4G-LTE when outside of their 5G carrier serving area.  Mobile subscribers will soon realize that and stop buying 5G smartphones.

Note 1.  PC magazine has tested smartphones on 5G networks from AT&T, T-Mobile, and Verizon. Their report Fastest Mobile Networks 2021 found that T-Mobile’s new mid-band 5G network is the only U.S. nationwide 5G that’s markedly faster than 4G

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About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC’s Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

References:

https://www.idc.com/getdoc.jsp?containerId=prUS48194821

https://www.idc.com/tracker/showproductinfo.jsp?containerId=IDC_P8397

https://www.pcmag.com/news/fastest-mobile-networks-2021

https://techblog.comsoc.org/2021/08/22/juniper-research-5g-smartphone-trends/

Juniper Research: 5G smartphone trends

A new study by Juniper Research has found that 5G‑compatible smartphones will account for over 50% of smartphone sales revenue by 2025; rising to $337 billion from $108 billion in 2021. It urged mobile handset vendors to ensure hardware maximizes the benefits of future mobile cloud computing solutions. Mobile cloud computing enables service providers to offload intensive tasks to the cloud; freeing on-device resources for essential device processes.

The new research, 5G Smartphones: Trends, Regional Analysis & Market Forecasts 2021-2026, predicts that successful handset vendors will include radios that are able to process large bandwidths and ultra-low latency to ensure that handset users are able to use cloud computing services efficiently, whilst remaining price competitive.

Android OS Handsets to Dominate in Emerging Regions

The report anticipates that increasing the availability of lower-tier 5G smartphones is crucial to propagate 5G handset adoption in emerging markets. It predicts that by 2025, global Android smartphone prices will be 65% lower than global iOS smartphone prices. It also highlights that this lower average cost of Android devices will lead to Android dominating 5G handset markets in regions such as Latin America.

Conversely, the research expects that the enduring popularity of iOS devices in developed markets will make 40% of global 5G smartphone revenue attributable to North America and Europe by 2025.

Development of 5G Handsets:
It is likely that the smartphone market will not see meaningful growth until another significant upgrade becomes available to the majority of consumers, not just those capable of purchasing high-end premium handsets. In addition to developments such as foldable handsets and biometrics, smartphone manufacturers are anticipating that the widespread introduction of 5G handsets will serve to  reinvigorate the market, in the same way that the introduction of 4G in 2010 boosted the sales of OEMs, such as HTC and Samsung.

 

‘Right-to-Repair’ Laws to Impact Shipments

The report warns that long-term 5G smartphone shipment revenue will be limited by impending ‘right-to-repair’ legislation in North America and Europe, as more handset users choose to repair older models rather than upgrading to newer generation devices.

Research author Adam Wears explained:

‘The effect of these laws will not be felt initially, as consumers adopt 5G smartphones to leverage the high speeds and reduced latency of 5G networks. Hardware vendors must use this opportunity to build out new device capabilities to encourage consumers to continue regularly upgrading and avoid churn to competitors.’

References:

https://www.businesswire.com/news/home/20210815005004/en/Juniper-Research-5G-Smartphones-to-Represent-Over-50-of-Smartphone-Sales-Revenue-by-2025

https://www.juniperresearch.com/document-library/white-papers/how-to-monetise-future-5g-services

https://www.juniperresearch.com/researchstore/devices-technology/5g-smartphones-research-report