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Global smartphone market declines amid component shortages: Canalys

The component shortages are not expected to ease until next year. Read more below.

By: Tech Desk | Mumbai |
October 18, 2021 6:51:45 pm
semiconductor shortage, chipset shortage, component shortage, smartphone market, smartphone shipments 2021, smartphone market share 2021,Here's how much market share each brand had during Q3 2021. (Express Photo)

Smartphone shipments across the globe fell by 6 per cent in Q3 2021 as vendors struggled to meet the demand for devices amid component shortages, stated a new report by Canalys. Brands that took a hit due to the component shortage included Xiaomi, Samsung, and Apple, among others.

“The chipset famine has truly arrived,” said Canalys Principal Analyst, Ben Stanton, adding that the shortages “will not ease until well into 2022”. This has also pushed smartphone brands to hike retail prices of phones.

“At the local level, smartphone vendors are also having to implement last-minute changes in device specification and order quantities. It is critical for them to do this and maximise volume capacity, but unfortunately, it does lead to confusion and inefficiency when communicating with retail and distributor channels,” he added.

Stanton further adds that with sales holidays like China’s Singles’ Day and Black Friday nearing us, channel inventories of smartphones are already running low. As more customers start anticipating these new cycles, the demand could further increase.

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“Customers should expect smartphone discounting this year to be less aggressive. But to avoid customer disappointment, smartphone brands which are constrained on margin should look to bundle other devices, such as wearables and IoT, to create good incentives for customers.”

Brands in Q3 2021 by market share

Samsung continued to stay at the top spot this quarter with 23 per cent market share, maintaining its number from Q3 2020. Meanwhile, Apple had 15 per cent market share this quarter compared to 12 per cent in the same quarter last year.

semiconductor shortage, chipset shortage, component shortage, smartphone market, smartphone shipments 2021, smartphone market share 2021, Check out all smartphone brands by market share in Q3 2021. (Image Source: Canalys)

Xiaomi stood third with 14 per cent market share, again maintaining its figure from Q3 2020. Vivo and Oppo (which now includes OnePlus phones from Q3 2021), both stood at 10 per cent market share this quarter, compared to 9 per cent in the same quarter last year.

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