According to Counterpoint Research, the worldwide smartphone market shipment revenue for the primary quarter of 2021 exceeds $100 billion. This is also a new record high and therefore the actual shipment revenue for Q1 2021 is $113 billion. This sale is driven by higher brands and manufacturers like Apple, Xiaomi, Oppo, and Vivo. The worldwide smartphone shipment increased by 20% year-on-year to 354 million units.
The large increase in the annual rate of growth is partly because of the poor sales within the same quarter of 2020. Last year was a terrible year for all manufacturers. Thus, there’s usually a year-on-year increase. The smartphone market may be worse than last year except there’s another pandemic. Despite the availability shortage, this quarter, the industry supply chain has prioritized the highest five brands. this allows them to launch flagship products before the standard cycle. This special treatment allows them to enhance their performance.
Due to the strong performance of the iPhone 12 series, Apple gained a record 1st quarter revenue share. Its high-end version, iPhone 12 Pro Max, is additionally highly regarded in countries/regions like the U.S and Europe. This smartphone also added massively to Apple’s revenue growth.
Manufacturers like Xiaomi, OPPO, and Vivo had flagship series like Mi 11, Find series and X60. This also enabled them to post record shipments. Xiaomi, OPPO, and Vivo have set a record high global market share globally also as in Europe, China, South Asia, and Latin America. These three brands have filled the gap left by Huawei and are in a very better position within the further development of those regions.
Tarun Pathak, director of research of Counterpoint Research, said: “Semiconductor shortages have affected the general supply landscape and extended chip delivery times. However, we see that these suppliers are seeking diversified foundry strategies to reduce chipsets within the 2nd half of this year. These shortages may increase the worth of specific parts by 5-10%, and smartphone manufacturers will absorb these cost increases by innovating with the bill of materials (BoM), and in some cases can also pass on the increased costs. within the long-term, to avoid repetitive geopolitical issues, countries will invest in upgrading domestic supply chains. this may reduce dependence on a couple of manufacturers”.
Samsung’s growth in revenue and shipments is especially thanks to the success of its S21 series. The brand has also been quite successful within the foldable smartphone market. However. its foldable smartphone lineup now has serious competition. The likes of Huawei Mate X2 and Xiaomi Mi MIX Fold will provide it a decent run for its money. Furthermore, we expect foldable devices from other companies like Vivo, OPPO, and TCL.