28 Oct 2021

Supply Chain Constraints Finally Catch Up to the Global Smartphone Market, Contributing to a 6.7% Decline in Third Quarter Shipments, According to IDC

NEEDHAM, Mass., October 28, 2021 – The double-digit growth in the smartphone market in the early quarters of 2021 came to an end in the third quarter of 2021 (3Q21) as worldwide shipments declined 6.7% year over year. According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone vendors shipped a total of 331.2 million units during the quarter. Although a slight decline was expected in the seasonally low third quarter, the actual decline were over twice the forecast of -2.9% growth.

"The supply chain and component shortage issues have finally caught up to the smartphone market, which until now seemed almost immune to this issue despite its adverse impact on many other adjacent industries," said Nabila Popal, research director with IDC's Mobility and Consumer Device Trackers. "In all honestly, it was never fully immune to the shortages, but until recently the shortages were not severe enough to cause a decline in shipments and was simply limiting the rate of growth. However, the issues have now compounded, and shortages are affecting all vendors alike. On top of component shortages, the industry has also been hit with other manufacturing and logistical challenges. Stricter testing and quarantining policies are delaying transportation and power supply constraints in China are restricting manufacturing of key components. Despite all efforts to mitigate the impact, all major vendors' production targets for the fourth quarter have been adjusted downwards. With continued strong demand, we don't anticipate the supply-side issues to ease until well into next year."

While almost all regions saw a decline in shipments during 3Q21, the severity of the impact varied between regions. Central and Eastern Europe (CEE) and Asia/Pacific (excluding Japan and China) (APeJC) suffered the largest declines of -23.2% and -11.6% year over year. However, in regions like the U.S., Western Europe, and China, the declines were much less pronounced at -0.2%, -4.6%, and -4.4% year over year, respectively, as these regions are usually given more priority by vendors.

Samsung finished the quarter in the top position with 69.0 million units shipped and 20.8% market share. This was a year-over-year decline of 14.2% largely due to supply constraints. Apple regained the second position with 50.4 million units shipped for 15.2% market share and an incredible 20.8% year-over-year growth. Xiaomi registered a 4.6% decline in 3Q21 after high double-digit growth over the previous four quarters as it also struggled with supply issues that it hadn't faced in earlier quarters. Xiaomi still captured the third position with 13.4% share and shipments of 44.3 million units. vivo and OPPO tied* for fourth place with shipments of 33.3 million and 33.2 million units and market shares of 10.1% and 10.0%. vivo saw year-over-year shipment growth of 5.8% while OPPO ended the quarter with 8.6% year-over-year growth.

Worldwide Smartphone Shipments, Market Share, and Year-Over-Year Growth, Q3 2021 (shipments in millions of units)

Company

3Q21 Shipments

3Q21 Market Share

3Q20 Shipments

3Q20 Market Share

Year-Over-Year Change

1. Samsung

69.0

20.8%

80.4

22.7%

-14.2%

2. Apple

50.4

15.2%

41.7

11.7%

20.8%

3. Xiaomi

44.3

13.4%

46.5

13.1%

-4.6%

4T. vivo*

33.3

10.1%

31.5

8.9%

5.8%

4T. OPPO*

33.2

10.0%

30.6

8.6%

8.6%

Others

101.1

30.5%

124.3

35.0%

-18.7%

Total

331.2

100.0%

354.9

100.0%

-6.7%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, October 28, 2021

Notes:

  • Data are preliminary and subject to change.
  • Company shipments are branded device shipments and exclude OEM sales for all vendors.
  • The "Company" represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
  • Figures represent new shipments only and exclude refurbished units.

* IDC declares a statistical tie in the worldwide smartphone market when there is a difference of 0.1% or less in the share of revenues or shipments among two or more vendors.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.





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Coverage

Companies Covered

OPPO Electronics Corp., Xiaomi Inc., VIVO S.A., Apple Inc., Samsung


Regions Covered

Worldwide


Topics Covered

Feature phone, Smartphone