Global smartphone market grows for the first time since 2017

Annual smartphone shipments grew 4 percent annually to 1.39 billion phones in 2021, even as the COVID-19 pandemic and global component shortages hampered supplies.

Counterpart Research data showed that in 2017, smartphone manufacturers shipped 1.56 billion units, and that number then declined each year from 2018 to 2020.

Demand in places like North America, Latin America and India contributed to the overall market growth last year.

Counterpart Research said, "Growth in the U.S. was largely driven by demand for Apple's first round of iPhone 12 5G.

This demand continued throughout the year, with the October to December quarter ending on a positive note due to holiday promotions and Black Friday sales.

India saw higher hardware replacement rates, better availability as well as more attractive financing options for mid- and high-end phones.

Counterpoint Research said smartphone sales in China have been declining at a 2% annual rate for several reasons.

These include a global shortage of semiconductors and components that has hampered phone makers' ability to ship devices.

The market recovery would have been better if it weren't for the ingredient shortage that affected much of the second half of 2021.

And the major brands were relatively more resilient to the ingredient shortage. As a result, it was able to grow by acquiring a share of smaller brands.
The performance of major smartphone manufacturers

Samsung retained the top spot as the world's largest smartphone manufacturer in terms of shipping volume, even though its factories in Vietnam have been under COVID lockdown for some time.

The South Korean company shipped about 271 million devices in 2021. That's 6% growth per year with increased demand for its mid-tier phones.

Samsung's growth has been limited at times due to increased competition in markets such as India and Latin America.

Apple saw its global smartphone shipments grow 18% annually to 237.9 million units. And shipments increased in key markets such as the United States, China, Europe and India.

Xiaomi saw its global shipments grow 31 percent annually to 190 million devices.

Although the size of its shipment is much smaller than the size of Samsung and Apple's shipments. But Xiaomi has grown in recent years to become the third largest smartphone manufacturer in the world. It also became the top smartphone brand in India after Samsung fell in 2018.

Oppo and Vivo also recorded double-digit growth last year. They shipped 143.2 million and 131.3 million devices, respectively.

There is reason to be optimistic about the phone industry's growth prospects in 2022 if the world can manage the pandemic and supply chain shortages are resolved by mid-year.

However, some analysts and investors expect the global chip shortage to continue through the end of this year or into 2023.