Smartphone sales to end users declined 6.8% in the third quarter of 2021, compared to the same time period in 2020, according to Gartner.
Article continues below
Component shortages disrupted production schedules, leading to lower inventory and delayed product availability, which eventually impacted sales to end users.
The current shortage of components, such as radio frequency and power management integrated circuits, delayed smartphone production globally.
This disrupted the supply demand equilibrium and end users were burdened with limited choices at point of sale. Sales of premium smartphones continued to grow even though overall smartphones sales declined in the quarter.
Apple reclaimed the No.2 position in sales to end users and Xiaomi moved back to No.3 in the third quarter of 2021. Samsung maintained its overall lead in smartphone sales, though its market share declined 1.9% year over year.
Even with the overall decline, Samsung experienced growth of its premium smartphones, led by strong demand for revamped foldable smartphones. Chinese smartphone vendors Xiaomi, Vivo and OPPO increased their market share 1%, 2.4% and 1.7% respectively, year over year.
Apple continued to experience strong demand for iPhones led by compelling feature upgrades and underpenetrated 5G installed base. Upgraded bionic A15 sensor, improved battery life and camera sensor optimization for improved photography are the leading features that drove iPhone upgrades. Apple continues to revamp its online channel and position trade in programs to accelerate demand for its 5G iPhones through the rest of 2021.
Xiaomi’s strong online channel led strategy for market expansion in Europe and the Middle East and partnering with communication service providers (CSPs) in these regions helped the company increase its global smartphone market share in the third quarter of 2021.
Vivo registered the highest year over year growth (20.9%) among the top five global smartphone vendors in the third quarter of 2021.
The company introduced 13 new smartphones in the quarter to try to gain advantage while entering new markets, including Europe and the Middle East, along with the addition of new offline retailers and experience stores to its strategy. ■