In the third quarter of 2021, global smartphone shipments fell 6% due to component shortages. Samsung remained the leading supplier with a 23% share. Apple regained second place with a 15% share due to strong demand for the iPhone 13. Xiaomi ranked third with a 14% share, and vivo and OPPO rounded out the top five with 10% shares each. Ben Stanton, chief analyst at Canalys, said: "The chip famine is here. The smartphone industry is working hard to maximize device production. On the supply side, chipset manufacturers are raising prices to discourage over-ordering in an attempt to narrow the gap between supply and demand. Nevertheless, the shortage will not ease until 2022. Coupled with the high cost of global shipping, smartphone brands are reluctantly pushing up device retail prices." Ben Stanton added: “At a local level, smartphone vendors also have to make last-minute changes to device specifications and order quantities. It is critical for them to do this and maximize capacity, but unfortunately this does lead to confusion and inefficiencies when communicating with the retail and distributor channels. Many channels are nervous about important sales holidays, such as China’s ‘Double Eleven’ and Black Friday in the West. Channel inventory of smartphones is already low, and as more customers begin to look forward to these sales cycles, the upcoming wave of demand may not be met. But to avoid customer disappointment, profit-constrained smartphone brands should consider bundling other devices such as wearables and IoT.” |
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