2020 for the global mobile market was marked by a drop in shipments caused by the coronavirus pandemic and a decrease in purchasing activity. Annual deliveries fell by about 7%. But analysts expect the market to start recovering this year.
Analysts from research firms Gartner and IDC note that, in addition to the coronavirus pandemic, the smartphone market is now being negatively impacted by a chip shortage and a semiconductor industry crisis, which has led to price increases and has forced a number of manufacturers to cancel the release of some products. But despite all the difficulties, global smartphone shipments are expected to reach 1.38-1.40 billion units this year. This is about 11.4-12% more compared to last year.
With limited supplies, smartphone makers are trying to maximize profits. This means that they will give preference to richer markets such as China, the United States and Western Europe, diminishing the focus on Latin America and Africa. In addition, it is more profitable for manufacturers to sell new smartphones through cellular operators. The fact is that users who purchase smartphones under a contract from a cellular operator are more likely to buy new models in order to extend the term of the contract, while others can easily postpone a smartphone update until better times.
Analysts also gave a forecast for sales of smartphones with support for fifth generation cellular networks. In their opinion, already in 2022, 5G smartphones will overtake their 4G competitors in terms of supply. This is quite expected, given that in the first quarter of 2021, 5G models accounted for about 37% of global shipments, and by the end of the year this figure should grow to 43%. Most of the growth in sales of 5G smartphones will come from low-cost models under $ 300 – their share by the end of the year will be about 32%
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