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REPORT: Parts Shortage Getting Worse, Smartphone Orders Unfilled

The total shipment volume of smartphones for 2021 won’t be as high as expected, with growth forecasts lowered as phone vendors find orders for parts remain unfilled.

According to market researcher Counterpoint Research, 1.41 billion smartphones are expected to ship in 2021, a rise of 6 per cent which is far more modest than the predicted 9 per cent leap.

“Some smartphone OEMs and vendors are reporting they had only received 80 percent of their requested volumes on key components during the second quarter of 2021, and the situation seems to be getting worse as we move through the third quarter,” the report said.

FILE – In this May 26, 2010 file photo, staff members work on the production line at the Foxconn complex in the southern Chinese city of Shenzhen, southern China. Wisconsin Gov. Scott Walker says President Donald Trump plans to make a “major jobs announcement for Wisconsin” as anticipation builds it will be about electronics giant Foxconn locating in the state. Taiwan-based Foxconn is best known as the assembler of the iPhone. Wisconsin is among seven states, mostly in the Midwest, that the company has named as possible locations to build the its first liquid-crystal display factory that could mean tens of thousands of jobs. (AP Photo/Kin Cheung, File)

“Some smartphone makers are now saying they are only receiving 70 percent of their requests, creating multiple problems.”

Counterpoint Research reports that 90 percent of the smartphone industry is dealing with short supply of necessary parts.

“The semiconductor shortage seems to affect all brands in the ecosystems,” said Tom Kang, a research director at Counterpoint Research.

“Samsung, Oppo, Xiaomi have all been affected and we are lowering our forecasts. But Apple seems to be the most resilient and least affected by the AP shortage situation.”

 

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