The global smartphone market will grow, with 43% capturing 5G models

The global smartphone market is expected to grow significantly this year. This is stated in the latest report by the analytical company Canalys. According to the analyzes, the expected growth will be around 12% and the total sales volume will reach the limit of 1.4 billion units. The GizmoChina portal addressed the topic.

Smartphone sales fell by 7% in 2020 due to the aftermath of the coronavirus pandemic, but the global situation is gradually beginning to return to normal, with the market responding with gradual growth. But experts warn that dramatic growth will tame new challenges. Specifically, these will be problems with the lack of necessary components, primarily semiconductors.

The demand for 5G models is growing

Ben Stanton, an analyst at Canalys, says the smartphone market is currently in huge demand for 5G models. During the first quarter of 2021, they accounted for up to 37% of all smartphones sold. Interest is expected to continue and 5G smartphones will account for up to 43% of all models sold in 2021. In other words, it will be 610 million units.

Strong competition

The sale of 5G models is intended to stimulate fierce competition and price competition between manufacturers, who have begun to prefer the connectivity of the new generation to other features of their devices. In order to keep the selling price as low as possible, they compromise various compromises, for example on the level of the overall performance of the equipment or the quality of the mounted display. The aggressive price struggle is even set to cause up to 32% of all 5G smartphones sold this year to be cheaper than $ 300.

The big challenge for smartphone manufacturers will be how they deal with current supply issues. The global shortage of semiconductors will not end so soon, and each company will try to get as much as possible for its own needs. In addition, companies will be faced with a financial issue. Either they increase sales prices or their margins fall. Despite all the complications, it looks quite promising for the smartphone market.