Canalys: The lack of parts is the main reason for the 6% annual decline in smartphone shipments during the third quarter of 2021.

Canalys: The lack of parts is the main reason for the 6% annual decline in smartphone shipments during the third quarter of 2021.

Canalys: The lack of parts is the main reason for the 6% annual decline in smartphone shipments during the third quarter of 2021.

News unit Canalys Research Institute on Friday, October 15 This year (October 23, 1400) it has published its report on the global smartphone market in the period from July to September 2021 published. According to the initial estimate of this institution in the past quarter, the amount of smartphone supply has decreased by 6% annually because the manufacturers have faced the challenge of lack of parts to meet the demand of users. In the meantime, Samsung is once again the leader with 23% of the market share. After that, Apple with 15% market share and thanks to high initial demand for iPhone 13 has regained its second place.

iPhone 13 Pro Max on the right and iPhone 12 on the left

After these two companies, the Chinese company Xiaomi has fallen to the third place with a market share of 14% and only 1% lower than Apple. According to Canalys report, Opo and Vivo, both with a market share of 10%, have taken the fourth and fifth places in the list of the top 5 smartphone manufacturers in the quarter ending September 2021. Of course, the point that can be seen in this report is that the supply of One ​​Plus along with Oppo in It is considered that these two companies, along with Vivo, are among the subcategories of BBK Electronics. Therefore, if we consider the total number of smartphones offered by all three companies in the third quarter of this year, they will most likely be in the second place after Samsung.

Preliminary data from five Top global smartphone brand in Q3 2021

The COVID-19 pandemic has had a negative impact on supply chains, and the chip industry has been particularly hard hit. According to Ben Stanton, senior analyst at Canalys, “the era of chip shortages has indeed arrived [and] the smartphone industry is trying to maximize device production as much as possible. On the supply side, chipmakers have raised prices to close the gap between supply and demand by eliminating over-orders. However, the shortages will not be reduced until 2022. This, along with the high costs of global transportation, has forced smartphone brands to increase the retail price of devices against their will.”

From his point of view, “at the local level, smartphone sellers are forced to change at the moment. Apply the latter in the specifications and order number of the devices. It’s very important for them to do that and maximize volume, but unfortunately the [consecutive changes] issue creates confusion and inefficiency when communicating with retail channels and distributors. Many channels become tense when faced with important sales holidays such as Singles’ Day in China and Black Friday in the West. The smartphone inventory of the channels is running out and hence it will be almost impossible to fulfill the demand by anticipating more customers in the time frames. [Accordingly] customers should expect less aggressive phone discounts [during the holiday season] this year.”

Stanton believes that smartphone brands should look for ways to offer other devices such as wearables and Internet of Things tools along with smartphones in order to avoid customer disappointment and motivate them to buy.

Samsung Galaxy Z Flip3

Chip shortages have challenged everything from NVIDIA and AMD to automaker General Motors and nearly every industry that relies in some way on computer components. The pressure on the semiconductor industry and the difficulty of manufacturers in providing smartphone parts started around the fourth quarter of last year, and before this, institutions such as Counterpoint also reduced their estimate of the global supply of smartphones in the second half of 2021 announced. Bloomberg also recently reported a decrease in the production of iPhone 13 due to the crisis. Parts Shortage published and in it he pointed out Apple’s problem in providing a chip related to the OLED display as well as wireless components.

On the other hand, news networks such as CNBC, citing Jia Shaoqian, the CEO of Hisense consumer and home appliance manufacturing company, believe that the chip shortage crisis for consumer devices is likely to last longer than Stanton predicted, perhaps by two or three. It will continue next year, and this is not good news for industries that rely on advanced chipsets.

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