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Global Smartphone Market Grew 13.2% Despite Shortages

The components shortage that crippled the global smartphone market is showing signs of easing.

Overall shipment volumes for smartphones during the June quarter grew 13.2 per cent year-on-year, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.

A total of 313.2 million devices were shipped during the quarter, with only China experiencing negative growth, with a 10 per cent decline due to numerous issues, including Huawei shipments continuing to decline.

“The smartphone market has been fortunate enough to not experience the severe supply constraints as the automotive, PC, and display industries,” said Ryan Reith, program vice president with IDC’s Mobile and Consumer Device Trackers.

“The pandemic is far from over, yet consumers around the world continue to show the need for mobile devices and a willingness to spend in these categories. Shipments of 5G devices are on the rise, especially as price points go down, but we continue to believe that consumers are not yet buying specifically for 5G.

“They are buying because they need a replacement device, and in some cases a first-time smartphone.”

Xiaomi has jumped into second position, following the decline of Huawei, and LG’s exit from the market.

“China’s role in Apple’s incredible growth in the last few quarters cannot be denied,” said Nabila Popal, research director with IDC’s Mobile and Consumer Device Trackers.

“Huawei had significant share in the high-end segment in China, and with its massive decline, Apple remained the best option for consumers in this segment.

Popal notes that in the March quarter, Apple had already captured 72 per cent of the >$800 segment in China, with Huawei dropping to 24 per cent.

“This is a clear sign that other players in this market have not breached this price segment,” said Popal.

“Globally, all Chinese brands are growing rapidly, with Xiaomi hitting record volume this quarter and year-over-year growth of 86.6%. Another rising star is realme, which saw the fastest year-over-year growth among the top 10 at 149% and more than three quarters of its volume coming from outside China.

“As all these Chinese brands increase their focus in regions like Europe, Latin America, and the Middle East and Africa, the competition will only get more intense for the likes of Samsung and other players in those markets.”