Global Smartphone Shipments to Grow by 5.5 Percent in 2021 Due to 5G Development: IDC

Technology

Global smartphone shipments are expected to grow by 5.5 percent in 2021, according to the latest data by International Data Corporation (IDC). In the first quarter of this year, smartphone shipments are expected to grow 13.9 percent. IDC attributes the strong push in 5G and pent-up demand for this growth. The report also estimates that in 2021, 5G phones could account for 40 percent of the total volume. Apple’s iPhone 12 series of 5G phones has accelerated in the growth of fifth-generation connectivity.

IDC data shows global smartphone market can reach a Compound Annual Growth Rate (CAGR) of 3.6 percent over the 2020 to 2025 forecast period. Due to the strong push of 5G, global smartphone shipments are expected to increase by 13.9 percent in the first quarter of this year, compared to the first quarter of last year. Overall, 2021 is expected to see a 5.5 percent growth in global smartphone shipments compared to last year. Not only 5G, IDC notes that the pent-up demand for smartphones is also contributing to increased shipments.

Supply chains, OEMs, and various other channels are better prepared for further lockdowns to meet the demand, which despite the current state of lockdowns, is still strong. Shipments through online channels went up to 30 percent of the total share in 2020, compared to 22 percent share in 2019.

This year, smartphone shipments in China are forecast to grow by 6 percent and 3.5 percent in the US. 5G development in both markets and the success of iPhone 12 series are expected to boost smartphone shipments this year. IDC also states that more than 40 percent of global volume of smartphone shipments in 2021 could be 5G smartphones. This is further expected to grow to 69 percent by 2025. Additionally, average selling price (ASP) for 5G smartphones is expected to drop to $404 (roughly Rs. 29,400) by the end of 2025 due to competition in the 5G Android space.


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