The world is still working together to overcome the ongoing pandemic. It has affected our lives and the tech world in many ways, and it seems that it will also affect global smartphone shipment growth. A recent report from Counterpoint suggests that 2021 smartphone production will see a huge impact because of the chip shortage caused in part by covid-19, as it will keep on growing, but slower than expected.
Counterpoint had predicted that smartphone shipments would reach a 9 percent annual growth, but the latest forecast has lowered to 6 percent annual growth. The main cause for this change is the current chip shortage.
“According to Counterpoint Research’s latest Global Smartphone Quarterly Shipment Forecasts, total units shipped for 2021 are expected to grow by only 6% annually to 1.41bn units; Counterpoint had previously called for 9% annual growth to 1.45bn units.”
“The smartphone industry was set for a strong rebound this year after COVID-19 had hit the market hard in 2020. Smartphone vendors placed large component orders from the end of last year, and consumer demand coming from delayed replacement purchases buoyed the market in the first quarter.
However, some smartphone OEMs and vendors are reporting they had only received 80% of their requested volumes on key components during Q2 2021, and the situation seems to be getting worse as we move through Q3 2021. Some smartphone makers are now saying they are only receiving 70% of their requests, creating multiple problems.
Counterpoint Research believes 90% of the industry is affected and this will impact the second half forecast for 2021.”
Android OEMs are expected to be more affected by the ongoing chip shortage. Reports suggest that suppliers have also decided to focus on Apple’s orders, as these are more stable and profitable than those from other big names in the market.