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Lack of materials to expand smartphone shipments may fall
Oct 14 , 2021

Lack of materials to expand smartphone shipments may fall


Market research agency Counterpoint Research warned that smartphone shipments this year will be hit hard due to chip shortages. As the shortage of smartphones in the third quarter expands, Counterpoint Research will increase the annual growth rate of global mobile phone shipments this year from the original estimate. 9%, down to 6%, to 1.414 billion units, 33 million units less than the original estimate. The shipments of 90% of brands, including Samsung, Xiaomi, and OPPO, are likely to decline, with only Apple shipping. The amount is relatively least affected.


From the end of the first quarter of last year to the second quarter of last year, smartphones were mainly in factories such as Europe, the United States, and China, which were closed down due to the epidemic. After a heavy blow to the demand for mobile phones, there has been a large number of mobile phone replacements since the fourth quarter of last year. The large shortage of semiconductor components has appeared since the first quarter and has become more and more serious. Counterpoint said that the mobile phone brand supply chain moved early. Since the fourth quarter of last year, a large amount of inventory has been accumulated, which is why most brands can survive the first season. In the second quarter, the main reason that the shipment volume was not significantly impacted by the shortage of materials.


However, Counterpoint also stated that many mobile phone brand supply chains stated that although they placed orders earlier, they only received about 80% of the components in the second quarter. Some brands only received 70% of the orders in the third quarter. It is estimated that 90% of the brand's shipments in the second half of the year will be affected by the shortage of semiconductor components and reduce.


In addition to the lack of materials for mobile phone cameras, sensor components, panel driver ICs, and power management ICs, Counterpoint said that the processor yield rate is not as expected, which is also one of the keys to the decline in global mobile phone shipments in the second half of the year.


Even if there is a wave of 5G mobile phone replacements, Counterpoint originally estimated that global smartphone shipments could increase by 9% annually to 1.447 billion units this year. Under the influence of material shortages in the second half of the year, it has been revised down to an annual increase of 6%. The volume is 1.414 billion pieces.

Source: Business Times

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