Chip Shortage To Significantly Affect Smartphone Shipments In 2021

Chip Scarcity To Considerably Have an effect on Smartphone Shipments In 2021

The continuing world semiconductor chip scarcity is claimed to considerably have an effect on smartphone cargo progress this 12 months. A number of main OEMs have reportedly did not safe as many elements as they needed. We are actually taking a look at a decrease than anticipated manufacturing quantity of smartphones. As such, analysis agency Counterpoint analysis has lowered its smartphone cargo forecasts for 2021. The agency now expects world smartphone shipments to develop about six % yearly to achieve 1.41 billion models. It beforehand estimated a 9 % annual progress to 1.45 billion models.

Based on the corporate, some smartphone OEMs and distributors obtained solely 80 % of the requested quantity of key elements within the second quarter of this 12 months. The difficulty is getting worse over time. Many OEMs are actually reporting an excellent decrease provide of elements. Nearly 90 % of the business is having to take care of this drawback.

Samsung cited the chip scarcity concern for canceling the Galaxy Notice collection this 12 months. The Galaxy S21 FE seems to be one other sufferer of this drawback. Different OEMs are additionally going through related issues. They’re now having to scale back the manufacturing quantity or cancel sure fashions.


“The semiconductor scarcity appears to have an effect on all manufacturers within the ecosystems,” said Tom Kang, Analysis Director at Counterpoint Analysis. “Samsung, Oppo, Xiaomi have all been affected and we’re reducing our forecasts. However Apple appears to be probably the most resilient and least affected by the AP (utility processor) scarcity scenario.”

Chip scarcity hits the smartphone business laborious after a pandemic-effected 2020

The smartphone business suffered a serious slowdown final 12 months because of the COVID-19 pandemic. The pandemic-induced monetary uncertainty, in addition to the restrictions imposed by the governments to comprise the unfold of the coronavirus, negatively affected gross sales of smartphones. A complete of 1.33 billion smartphones have been bought globally final 12 months. The quantity marked a serious, 10 % annual decline in shipments from 1.48 billion models the 12 months earlier than.

However because the pandemic subsided, the market began to get better. This autumn 2020 and Q1 2021 outcomes promised a robust 2021 for the smartphone business. Nevertheless, an unprecedented chip scarcity concern has now come down crushing all hopes.


Consultants imagine this semiconductor scarcity drawback is right here to remain for a while. Chip manufacturing corporations like TSMC, Samsung, and Intel are engaged on increasing their respective manufacturing capability. Nevertheless, that may take time, at the least a couple of years.

In the meantime, the hole between demand and provide is so excessive that the present manufacturing capability could not have the ability to shut that down anytime quickly. Time will inform how the tech business copes with this unprecedented semiconductor concern.

Counterpoint 2021 smartphone shipment chip shortage


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