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In 2021, a record year-on-year increase in smartphone sales is expected

That year should be a record year for smartphone sales. At least that’s what the analytics company says International Data Corporation (IDC)which has increased its short – term outlook to the global smartphone market in the coming months. The year-on-year increase in sales this year should be even the largest since 2015.

Demand will increase mainly due to a wider range of 5G smartphones

According to IDC’s analysis, smartphone deliveries are expected to reach 1.38 billion units in 2021. Compared to 2020, this is an increase of 7.7%. This trend is expected to continue in 2022, with year-on-year growth of 3.8% for a total of 1.43 billion units delivered. The main reason is the demand for 5G smartphones, which already have coverage of 5G networks in Western countries.

Smartphone sales 2021 Photo: IDC.com

In emerging markets, demand for mid-range smartphones and low-cost 4G models will continue to grow after the pandemic. Looking ahead, IDC expects low single-digit growth to continue until 2025, with a five-year annual growth rate (CAGR) of 3.7%. However, this can be negatively affected by the global shortage of semiconductors, which remains a problem for many industries, including the smartphone market.

Prices for 5G smartphones should fall significantly

Strong supply pressure will continue on the supply side of 5G smartphones, which should reduce their prices. IDC expects average sales prices for 5G Android devices to fall 12% year-over-year to $ 456 in 2021 and then below $ 400 in 2022. This should also put price pressure on Apple, which makes iPhones with iOS system.

From the point of view of the regions, in 2021 China will be at the head with almost 50% share of 5G smartphone shipments. China will be followed by the USA with a 16% share. Other major markets, such as Western Europe and Asia / Pacific (excluding China and Japan), will have a combined 23.1% share of the global 5G smartphone market by the end of 2021.

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