• - Canalys forecasts 12% growth in the smartphone market in 2021

    Canalys forecasts 12% growth in the smartphone market in 2021

    6 Days, 14 Hours ago

    Tags:  Statistics  -  Canalys  -  5G

    2020 was marked by the difficulties of quarantine and the global COVID-19 epidemic. Conditions that also had a significant impact on the smartphone market, leading to a 7% drop in global supply. Now, according to the latest forecast from Canalys, the supply of smartphones in 2021 will grow by 12% to 1.4 billion units and the market will return to its previous upward trend. This has been largely confirmed by other research institutes. Gartner forecasts 11.4 percent growth, and IDC conservatively estimates 1.38 billion units and 7.7 percent growth for the smartphone market this year.  <b>Canalys</b> predicts <b>12%</b> <b>smartphone</b> <b>market</b> <b>growth</b> in <b>2021</b>

    Of course, Canalys analysts have predicted that by continuing to inject vaccines in various countries and control the global corona epidemic, Supplying the required parts of the smartphone will be a new bottleneck that will threaten the industry. "The flexibility of the smartphone industry is truly incredible," said Ben Stanton, Canalys' chief research officer. Smartphones are vital to people's communication and entertainment, and are just as important outdoors. In some parts of the world, people have not been able to spend their money on holidays and in recent months, and many have spent their income on a new smartphone instead. In addition, there has been a strong wave of fifth-generation handsets, with sales reaching 37% in the first quarter [this year]; While this amount is expected to reach 43% (610 million units) for the whole year. This will be accompanied by fierce price competition from vendors, and many features, including the display or power [battery], will be sacrificed using 5G on the cheapest devices possible. By the end of the year, 32 percent of all fifth-generation devices will be priced at less than $ 300. "Apparently, the time has come for widespread acceptance." <b>Canalys</b> <b>forecasts</b> <b>12%</b> <b>growth</b> in <b>smartphone</b> <b>market</b> In <b>2021</b> Estimating and forecasting the global supply of smartphones in terms of network generation from 2019 to 2023

    Meanwhile, the shortage of parts supply will limit the potential growth of smartphone supply this year. According to Stanton, the industry is fighting for semiconductor components, and all brands are feeling the pressure of competition. Phone manufacturers have shifted some of their resources to other regions in recent months due to the high prevalence of COVID-19 in India, but the return of the world to normal will once again destabilize the situation. To address this, suppliers will first prioritize regions and divert resources to profitable and developed markets such as China, the United States and Western Europe; This will be to the detriment of markets such as Latin America and Africa. But there will still be restrictions, even in these areas. Therefore, companies have to prioritize sales channels, allocate more resources to active and fast channels such as telecom operators, and at the same time provide less resources to the distribution and free market sectors. This, of course, will be accompanied by interesting side issues, and may be an opportunity for competing brands to increase their market share if current actors are unable to meet market demand. "The other side of the market [this year] is pricing [phones]," said Nicole Peng, vice president of mobile at Canalys, referring to market conditions. "Because the price of key components, such as chipsets and memory, has risen, smartphone retailers will have to decide whether they can afford it or pass it on [to the price of the device] to consumers." <b>Canalys</b> <b>forecasts</b> <b>12%</b> <b>growth</b> in the <b>smartphone</b> <b>market</b> in 2021 Estimates and forecasts of global smartphone supply from 2018 to 2024 < But despite the major constraints on the supply of LTE chips, there will be serious challenges in the market for low-end products; Where buyers of its products are more price sensitive. Therefore, smartphone manufacturers must improve their operational efficiency while reducing their profit margins in the portfolio of low-end products, and otherwise expose themselves to the risk of transferring market share to competitors.

    The COVID-19 epidemic has brought about permanent changes in human lifestyles that will bring new norms to society as well as the smartphone market. Stanton added that the canals had to change or disappear during the Corona epidemic. In developed countries, online sales channels have become widespread, and retailers have been forced to rethink their operations. As a result, many physical stores will close this year, and those that remain active will focus more on customer support and order delivery. Because customers are increasingly using different channels in the purchasing process. Innovations from COVID-19, including integrated warehousing and in-car delivery, are helping retailers move to new perspectives and hybrid sales channels, Stanton said. Centralized supply also gives channels more power to negotiate with smartphone brands, and may cause some retailers to seek to establish a direct relationship with manufacturers by bypassing the distribution sector. A new norm that will be cruel but competitive for the smartphone industry.

    Labels: canalys, forecasts, 12%, growth, smartphone, market, 2021

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