2021 will see the smartphone market close with sales of approximately 1.35 billion pieces, a value that corresponds to a a growth of around 5.3% compared to the figure for 2020. IDC extensionwho made these predictions, however still sees significant difficulties related to the availability of components necessary for the construction of smartphones.
For this reason sector growth estimates for the next few years have been revised downwards: for 2021 the estimate has risen to 5.3% from the original 7.4%, while for 2022 the figure has fallen from 3.4% to 3%. Looking ahead, IDC indicates a estimate of 3.5% average growth for the next 5 yearswith a process of continuous replacement of traditional phones by smartphones underway in developing regions thanks also to a contraction in average selling prices.
It is interesting to highlight how the component supply problems, which have limited the companies’ production capacity, are more related to smartphones with 4G technology than to 5G ones. It is precisely for this reason that the impact of the shortage of components has generated greater repercussions in terms of overall volumes: in fact, 4G terminals are the most sold due to lower prices.
In general, the market will experience a contraction in sales during the fourth quarterlargely offset by the very sustained growth recorded during the first half. The comparison is also made with 2020, a year in which the first half of the year saw limited sales due to generalized confinements, while the second saw a strong rebound.
Overall, the sales results of 5G smartphones have been very good, with a growth of 117% compared to 2020 thanks to the greater availability of smartphones compatible with this technology and the push from manufacturers and the channel. There is a significant difference in the average purchase cost between 5G terminals and 4G models: for the former we are talking about a value of 643 dollars in 2021, since it drops to a good 204 dollars for smartphones 4G. The average selling price of smartphones was $384 in 2021, up from previous years due to consumer demand for increasingly sophisticated and complex smartphones.
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