In the first half of the year, the smartphone market continued to grow despite component shortages, production issues, and the other challenges that have affected the electronics industry. That changed in the third quarter, however, with IDC saying its research shows that supply chain problems led global smartphone shipments to decline 6.7% year over year.
“On top of component shortages, the industry has also been hit with other manufacturing and logistical challenges,” IDC Worldwide Tracker Team Research Director Nabila Popal said in a statement. “Stricter testing and quarantining policies are delaying transportation, and power supply constraints in China are restricting manufacturing of key components.”
These constraints have affected manufacturers in different ways. Samsung’s global shipments reportedly saw a 14.2% drop from 80.4 million units in 3Q20 to 69 million in 3Q21, for example, whereas Xiaomi’s shipments fell by just 4.6%. Shipments from the nebulous “others” category is said to have dropped by 18.7% with 124.3 million last year and 101.1 million this year.
IDC says that some manufacturers actually increased their shipments in the third quarter. Apple’s shipments are said to have enjoyed a 20.8% increase from 41.7 million units in 3Q20 to 50.4 million units in 3Q21. Shipments from Vivo and Oppo rose a respective 8.9% and 8.6% year over year, too, and IDC says they both account for about 10% of the market now.
But it seems that even Apple, Vivo, and Oppo probably won’t be able to sustain that kind of growth for long. “Despite all efforts to mitigate the impact,” Popal said, “all major vendors’ production targets for the fourth quarter have been adjusted downwards. With continued strong demand, we don’t anticipate the supply-side issues to ease until well into next year.”
So far it’s been much easier to buy a new smartphone than it has been to purchase the latest graphics cards, game consoles, and other electronics. IDC’s research suggests that’s finally changing, though, which is a bummer for anyone who took solace in their ability to spend their hard-earned cash on something that runs on electricity. Now what’ll they buy? Books? (Nope.)
