The global smartphone market experienced a significant resurgence in the first quarter of 2021, with sales up 27%. The smartphone industry was affected by Covid-19 due to production and economic problems that had caused supply problems and lower demand. However, the easing of lockdowns around the world has laid the foundation for a recovery. Samsung, whose position at the top of the market has been challenged of late by Apple and Huawei, shipped 76.5 million units to take a 22% share.
Global smartphone sales
Apple came in second with 52,4 million and 15%, while Xiaomi had its best performance in a single quarter, increasing its sales by 62% to 49 million units in the third. Oppo's sales increased 60% to 37,6 million and Vivo increased its volumes 48% to 36 million, rounding out the top five. Samsung has benefited from the demise of Huawei, which has seen its smartphone fortunes decline thanks to a combination of US sanctions that have limited its access to key technologies and the related sale of its Honor subsidiary. Huawei is now only the seventh largest smartphone maker with 18,6 million units. The company's struggles have also benefited its Chinese rivals, which are increasingly targeting markets outside their home country with affordable, feature-rich mid-range phones. “In addition to great product value, Xiaomi is now making strides in recruiting local talent, becoming more channel-friendly and leading the way in high-end innovation, as seen with the Mi 11 Ultra and its recent foldable, the Mi Mix Fold. ,” said Ben Stanton, director of research at Canalys. “Its competitors offer a higher channel margin, but Xiaomi's high volume actually gives dealers a better chance to make money than competing brands. But the race is not over. Oppo and Vivo are hot on its heels and are positioned in the mid-range in many regions where Xiaomi is in the low-end. Honor is also an imminent threat. It has already entered into supply chain agreements and is now signing distribution agreements to re-enter various markets in the second half of 2021. Xiaomi is leading the pack, but the race is only getting started. Analysts also noted that LG's exit from the mobile phone business could be an opportunity for Motorola, TCL, Nokia or ZTE in the Americas, and that while Covid-19 remains a key factor for manufacturers, the shortage of chips in the world is now a major concern. . “Supply of critical components such as chipsets has quickly become a major concern and will hamper smartphone shipments in the coming quarters. And that will inspire global brands to rethink regional strategies,” added Stanton. “Some brands, for example, have de-prioritized device shipments to India, amid the new wave of COVID-19, and are instead focusing their efforts on recovery regions, such as Europe. And as long as shortages persist, this will give big companies a unique advantage, as global brands have more power to negotiate allocation. This will put additional pressure on smaller brands and could force a lot of people to follow LG. "