Improved consumer outlook and pent-up demand fueled growth
After a sharp decline in 2020, global smartphone sales to end users grew by 261TP1Q in the first quarter of 2021, according to the latest survey from Gartner, Inc., world leader in research and advice for companies. Global mobile phone sales to end users grew 221TP1Q year-over-year.
“The improved consumer outlook, sustained learning and working from home, along with pent-up demand in 2020 boosted smartphone sales in the first quarter. Consumers began to spend on discretionary items as the pandemic situation improved in many parts of the world and markets opened up,” says Anshul Gupta, Senior Director of Research at Gartner. “However, you can't ignore that basis for comparison, as 2020 was a year with fewer sales than 2019. That explains the double-digit growth.”
The top three global smartphone vendors maintained their respective positions in the first quarter of 2021 (1Q21). The launch of mid-priced smartphones, such as phones priced below US$ 150, boosted Samsung unit sales worldwide. The early launch of its flagship 5G smartphones also contributed to the company's handset sales growth.
Apple returned to No. 2 on the global list in the first quarter of 2021, after securing No. 1 in the fourth quarter of 2020. The launch of its first iPhone 5G led to an increase in 2021. “5G will continue to be Apple's main growth driver in 2021. device updates will fuel demand for Apple's flagship phone throughout the year,” says Gupta.
All of the top five global smartphone vendors posted strong growth compared to 2020, indicating that the phone market is consolidating around the top five vendors. Chinese manufacturers Xiaomi, Oppo and Vivo all witnessed the growing demand for 5G smartphones and capitalized on the opportunities due to weakening sales of Huawei and LG globally this quarter.
THE global chip shortage it has not yet impacted the smartphone industry as the balance between demand and supply has been met. However, this could change in the coming quarters and could result in an increase in the average selling price of smartphones around the world.
