Smartphone gross sales down 6% as chip shortages start to impression market – TechCrunch


Canalys reported this morning that world smartphone gross sales are off 6% this quarter, and it’s not due to lack of demand. It’s as a result of worldwide chip scarcity.

The pandemic has had a unfavourable impression throughout provide chains, and chips have been notably exhausting hit. Canalys principal analyst Ben Stanton says that producers are attempting to maintain up as finest they’ll, however the chip scarcity is a official roadblock proper now. “On the provision aspect, chipset producers are rising costs to disincentivize over-ordering in an try to shut the hole between demand and provide. However regardless of this, shortages won’t ease till properly into 2022,” he mentioned in a press release.

What did the market seem like this previous quarter because of these provide chain points? Effectively, the standard suspects maintained their market share positions with Samsung holding regular 12 months over 12 months at 23%. In the meantime Apple noticed YoY gross sales improve 3% to fifteen% this quarter. Xiaomi held regular in third place at 10% with no change YoY.

Canalys Smartphone marketshare chart for Q32021.

Picture Credit: Canalys

Producers should be involved at this flip of occasions, particularly as we head into the essential vacation procuring season. Apple launched the brand new iPhone 13 on the finish of September, too late for this quarterly report, however little question timed for the procuring season. The chip scarcity points may put a damper on its plans. Despite the fact that each Samsung and Apple make their very own chipsets for his or her cell gadgets, every firm continues to be feeling the impression of the chip element scarcity.

In consequence, Stanton says will probably be unlikely shoppers will see any price reducing this 12 months, as manufacturing prices proceed to spiral upward. As an alternative, he anticipates that we might even see extra bundling of telephones with different gadgets as a shopping for incentive. “Prospects ought to count on smartphone discounting this 12 months to be much less aggressive. However to keep away from buyer disappointment, smartphone manufacturers that are constrained on margin ought to look to bundle different gadgets, reminiscent of wearables and IoT to create good incentives for purchasers.”

CNBC reported simply yesterday that the patron chip scarcity may persist even longer than Stanton is predicting, maybe so long as two to a few years, in line with president of Hisense, Jia Shaoqian, whose firm makes gadgets like residence home equipment and client items.


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