Smartphone market hurt by supply chain issues in third quarter

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Samsung and Apple topped smartphone shipments within the third quarter.

Patrick Holland/CNET

Worldwide shipments of smartphones took a higher hit than anticipated within the third quarter, declining 6.7% after posting double-digit development within the first half of 2021, in accordance with an IDC report Thursday. The market researcher attributed the decline to disruption within the provide chain that has been dogging many gadget producers.

“The provision chain and part scarcity points have lastly caught as much as the smartphone market, which till now appeared virtually resistant to this concern regardless of its opposed impression on many different adjoining industries,” Nabila Popal, analysis director with IDC’s Mobility and Shopper System Trackers, mentioned in an announcement. “In all truthfully, it was by no means absolutely resistant to the shortages, however till not too long ago the shortages weren’t extreme sufficient to trigger a decline in shipments and was merely limiting the speed of development.”

Smartphone makers shipped 331.2 million items through the quarter and whereas shipments had been anticipated to expertise a seasonal decline of two.9%, the precise drop was extra dramatic and diversified drastically primarily based on areas. Central and Japanese Europe suffered the best decline of 23.2%, whereas the US and Western Europe skilled much less extreme drops of 0.2% and 4.6%, respectively.

Samsung retained its markets title with a 20.8% share, down from 22.7% within the year-ago quarter, on 69 million items. Apple regained the No. 2 spot by delivery 50.4 million items shipped for a 15.2% marketshare, up from 11.7% a yr in the past. Xiaomi got here in an in depth third with 44.3 million items shipped for a 13.4% share, up from 13.1% regardless of delivery 2 million fewer items than a yr in the past.

Along with part shortages affecting all distributors, the business has been hit by different challenges, together with stricter testing and quarantining insurance policies, that may have an effect on manufacturing effectively into 2022.

“Regardless of all efforts to mitigate the impression, all main distributors’ manufacturing targets for the fourth quarter have been adjusted downwards,” Popal mentioned. “With continued sturdy demand, we do not anticipate the supply-side points to ease till effectively into subsequent yr.” | Smartphone market damage by provide chain points in third quarter


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