Recovering emerging markets expected to boost smartphone shipments
Economic recovery is apparent in the emerging markets after coronavirus-related lockdowns are wrapping up. IDC research indicates that a 7.4% increase is a reasonable expectation of growth for global smartphone shipments in 2021. Bigger markets are likely to demonstrate lower numbers than before the pandemic, but the emerging markets seem optimistic as far as the recovery trend is concerned. In addition, the data show that 5G smartphones are the locomotive of this growth trend.
In comparison to 2019, the growth in 2020 and 2021 has been minimal, yet it was still there. In 2021, a 7.4% increase is expected, bringing global shipments to 1.37 billion units. This year, a 13.8% surge in iOS sales and a 6.2% increase in Android device sales averaged out to the 7.4% increase. A 3.4% growth is expected in 2023.
Bigger markets, i.e., China, the US, and Western Europe are still expected to see lower shipment volumes against 2019 numbers. However, emerging markets such as Africa, India, Japan, and the Middle East are contributing to the global recovery.
The reason behind this increase is said to be the general better preparedness of the smartphone market in terms of the supply chain. While computer and certain adjacent markets suffered a great deal during the pandemic, the smartphone industry was able to continue with its production plans, although the timeline may have been pushed out.
5G smartphones are significantly more expensive than their predecessors, thus, they create the foundation for the economic recovery. Their average selling price (ASP) is said to have grown by $2 year-to-year. Meanwhile, the ASP of 4G phones is still declining, dropping by 30% in 2021 compared to last year.
Higher-priced smartphones (over $1,000) sales grew 116% in Q2 2021 compared to 2020. A 9% increase in their ASP also pointed to a higher demand for more expensive 5G devices than for budget models.Source