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| The global smartphone market is growing for the first time since 2017 |
According to a report by market research firm Counterpart Research, the global smartphone market grew for the first time in four years, but the total number of devices shipped last year remained below pre-pandemic levels.
Despite the global COVID-19 pandemic and component supply shortages, annual smartphone shipments will grow by 4% annually to reach 1.39 billion units in 2021.
In 2017, smartphone manufacturers shipped 1.56 billion units, according to Counterpart Research, followed by an annual decline from 2018 to 2020.
Demand in North America, Latin America and India, among other countries, contributed to the overall market growth last year.
"Growth in the US was primarily driven by demand for Apple's first 5G iPhone 12 series," Counterpart Research said.
This demand continued throughout the year, with the October-December quarter ending on a high due to Christmas promotions and Black Friday sales.
India has seen higher hardware replacement rates, better user experience and more attractive financing options for mid- to high-end phones.
According to Counterpoint Research, smartphone sales in China are declining at an annual rate of 2% for a number of reasons.
These include global shortages of semiconductors and components that are hampering phone makers' ability to ship devices.
The market recovery would have been better if the shortage of raw materials had not affected much of the second half of 2021.
The major brands have held up relatively well against the lack of ingredients. As a result, he was able to expand by acquiring stakes in smaller brands.
The performance of the major smartphone manufacturers
Samsung remains the world's largest smartphone maker by shipments, although its factories in Vietnam have been closed for some time due to COVID.
The South Korean company shipped around 271 million devices in 2021. With the increased demand for mid-range phones, this translates to 6% annual growth.
Samsung's growth has been limited at times due to increased competition in markets such as India and Latin America.
Apple's global smartphone shipments grew 18% year-over-year to 237.9 million units. Deliveries have also increased in key markets such as the United States, China, Europe and India.
Xiaomi's global shipments grew 31% annually to 190 million devices.
Although its shipments are much smaller than those of Samsung and Apple. But Xiaomi has grown to become the world's third largest smartphone maker in recent years. After the demise of Samsung in 2018, it is now the #1 smartphone brand in India.
Oppo and Vivo also saw double-digit growth last year. They shipped 143.2 million and 131.3 million devices respectively.
If the world can beat the pandemic and supply chain bottlenecks are resolved by mid-year, there is reason to be optimistic about the phone industry's growth prospects in 2022.
However, some analysts and investors expect the global chip shortage to continue until the end of this year or even 2023.