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Apple faces price pressure from rival 5G smartphone makers, IDC says

Shipments of smartphones are forecast to increase at 7.7 percent to reach 1.38 billion units in 2021, says IDC. In 2022, smartphone shipment will increase at 3.8 percent to 1.43 billion, the latest IDC report said. Find out latest news about  5G smartphone makers below.

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Markets worldwide continue to migrate toward 5G, where networks are deployed. Within emerging markets, there is strong demand for mid-range and low-end 4G phones following last year’s pandemic slowdown. 5G smartphone makers

The semiconductor shortage remains a concern for many industries and the smartphone market has not been excluded from this. However, the impact has been far less than in other markets like automotive, PC, and various consumer tech categories, said Ryan Reith, program vice president with IDC’s Worldwide Mobile Device Trackers.
Average selling prices (ASPs) for 5G Android devices will drop 12 percent year over year in 2021 to $456 and then below $400 in 2022. Apple will continue to feel price pressure.

The 5G shift will also deliver peak smartphone ASPs in 2021 ($376, up 9.7 percent year over year) when compared to the remainder of the forecast period as costly 5G devices continue to replace LTE devices, which are also starting to drop in price, down 27 percent in 2021.

5G shipments are expected to grow nearly 130 percent in 2021. Almost all regions outside of China will see triple-digit growth by the end of this year. China will lead the way with nearly 50 percent share of 5G shipments in 2021 while the US will follow with a 16 percent share.

Anthony Scarsella, research manager with IDC’s Worldwide Mobile Device Trackers, said: “2021 will represent the largest year-over-year growth the market has witnessed since 2015, as the shift towards 5G across all price tiers continues to accelerate.”


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