China would lead the way in market share with nearly 50 per cent share of 5G shipments in 2021, followed by the US with a 16 per cent share
Even as the chip shortage crisis continues to hamper productions, a new report by International Data Corporation (IDC) suggests that smartphone shipments could reach up to 1.38 billion units this year, implying a 7.7 per cent increase over 2020 and the highest-ever since 2015.
“Smartphones are seeing competition for consumer spending from adjacent markets like PCs, tablets, TVs, and smart home devices, yet that hasn’t slowed the market’s path to recovery,” said Ryan Reith, program vice president with IDC’s Worldwide Mobile Device Trackers.
According to IDC’s ‘Worldwide Quarterly Mobile Phone Tracker’, this trend is expected to continue into 2022, when year-over-year growth will be 3.8 per cent with shipments reaching 1.43 billion.
5G Boom
IDC further added that almost all regions outside of China will see triple-digit growth by the end of this year, thanks to 5G shipments which are expected to grow nearly 130 per cent in 2021.
China would lead the way in market share, however, with nearly 50 per cent share of 5G shipments in 2021, followed by the US with a 16 per cent share.
Additionally, the Western Europe and Asia/Pacific (excluding China and Japan) markets will combine for a 23.1 per cent share of the worldwide 5G market by the end of 2021.
“2021 will represent the largest year-over-year growth the market has witnessed since 2015, as the shift towards 5G across all price tiers continues to accelerate,” said Anthony Scarsella, research manager with IDC’s Worldwide Mobile Device Trackers.
The 5G shift will also deliver peak smartphone ASPs in 2021 ($376, up 9.7 per cent year over year).
Within emerging markets, there is strong demand for mid-range and low-end 4G phones following last year’s pandemic slowdown.
IDC expects low single-digit growth to continue through 2025 with a five-year compound annual growth rate (CAGR) of 3.7 per cent.
