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Global smartphone sales up 10.8% in Q2 despite chip shortage, supply constraint - Mint

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NEW DELHI: Smartphone sales to end users worldwide grew 10.8% year-on-year in the second quarter of 2021, despite component shortages and supply constraints. According to a report by market research firm Gartner, sales to end users totaled 328.8 million in the second quarter. Overall mobile phones sales, both smartphones and feature phones, rose10.2% during the period.

The smartphone industry has been plagued by a crippling chip shortage since late last year, along with constraints in shipping and other supply channels. In May, chipmaker Intel’s CEO, Pat Gelsinger, had said the pandemic led to a “cycle of explosive growth" in the industry and placed constraints on supply chain. “While the industry has taken steps to address near-term constraints, it could still take a couple of years for the ecosystem to address shortages in foundry capacity, substrates, and components," he added.

The firm noted that while the second wave of covid-19 infections affected sales in markets like India and Vietnam, regions with higher 5G penetration saw strong demand. “Reinforced shelter-in-place instructions and factory shut-downs in India and Vietnam due to the second wave of COVID-19, along with closure of retail businesses and restrictions on online deliveries affected smartphone sales negatively in the second quarter after a strong start in beginning of 2021," said Anshul Gupta, senior research director at Gartner.

“However, regions with higher penetration of 5G connectivity saw strong demand for 5G smartphones and were growth drivers for leading smartphone vendors," he said.

It also concurred with an earlier report from competitor Canalys, noting that Xiaomi outperformed Apple for the first time, becoming the second largest smartphone seller in the world. The company sold over 51 million units during the quarter, 15.5% higher than last year. Samsung retained its top spot in the market, growing sales by 17.6% year-on-year and selling over 57 million units during the quarter. Apple sold over 49 million units and grew by 15% year-on-year during the quarter. Gartner attributed Xiaomi’s rise to the second position to “stronger online presence" and “fast expansion in global markets" beyond the Asia-Pacific region.

That said, while Xiaomi did sell more units than Apple during the quarter, the American technology giant still retains the second spot in terms of market share. Samsung had 18.4% of the market share, while Apple had 12.9%. Xiaomi, on the other hand, had 9.5% of the global market share. The second quarter is also a lean one for Apple, since the company announces its newest iPhone in the September-October period, keeping buyers from spending on current devices.

“While demand for iPhone 12 series smartphones remained strong in the key 5G driven markets, aggressive sales promotion for iPhone 11 series smartphones added to its growth in the price-sensitive segment," said Gupta.

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Global smartphone sales up 10.8% in Q2 despite chip shortage, supply constraint - Mint
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