Global smartphone shipments sink by 6% due to supply constraints

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Beyond constituent shortages, stricter COVID-19 investigating and quarantining requirements are delaying the proscription of cardinal parts, says IDC.

Smartphones connected the antagonistic of a electronics store

Supply shortages and related snafus person yet caught up with the smartphone industry, putting a dent successful the double-digit maturation seen earlier successful 2021. Worldwide smartphone shipments fell by 6.7% during the 3rd quarter, dropping to 331.2 million, probe steadfast IDC said connected Friday. Though the 3rd 4th is typically languid successful beforehand of the vacation season, the diminution was astir doubly IDC's forecast of a 2.9% descent.

SEE: 5G smartphones: A cheat sheet (TechRepublic)

In comparison, smartphone shipments surged by more than 25% successful the archetypal 4th of 2021 and by more than 13% successful the 2nd quarter, according to IDC. Fellow probe steadfast Canalys besides reported connected the latest results, pegging the quarterly alteration astatine 6%, with full shipments coming successful astatine 325.5 million.

IDC blamed the third-quarter downfall mostly connected proviso concatenation constraints.

"The proviso concatenation and constituent shortage issues person yet caught up to the smartphone market, which until present seemed astir immune to this contented contempt its adverse interaction connected galore different adjacent industries," said Nabila Popal, probe manager with IDC's Mobility and Consumer Device Trackers. "In each honestly, it was ne'er afloat immune to the shortages, but until precocious the shortages were not terrible capable to origin a diminution successful shipments and was simply limiting the complaint of growth. However, the issues person present compounded, and shortages are affecting each vendors alike."

Other factors person paused the sector's betterment from past year's downturn. More stringent investigating and quarantining policies to combat the coronavirus pandemic person delayed the proscription of indispensable parts and products. Plus, constraints of powerfulness supplies successful China person constricted the industry's quality to manufacture halfway components.

"Despite each efforts to mitigate the impact, each large vendors' accumulation targets for the 4th fourth person been adjusted downwards," Popal said. "With continued beardown demand, we don't expect the supply-side issues to easiness until good into adjacent year."

The severity of the diminution successful shipments differed based connected region. Central and Eastern Europe and Asia/Pacific (excluding Japan and China) were deed by the biggest drops astatine -23.2% and -11.6%, respectively. The U.S. fared overmuch amended with a dip of conscionable -0.2%, followed by Western Europe with a -4.6% downturn, and China with a -4.4% fall.

Despite a slump successful shipments, Samsung was the apical vendor for the 4th with 69 cardinal phones shipped, according to some IDC and Canalys. Shipments fell owed to proviso shortages of Galaxy A bid devices arsenic good arsenic the deficiency of a caller Galaxy Note phone, said Canalys main expert Ben Stanton. On the positive side, Samsung shipped much than 3 cardinal of its foldable devices, including the Galaxy Z Flip3 and Fold3, but those results weren't capable to boost the wide numbers.

Enjoying a steadfast upturn, Apple took backmost the 2nd spot arsenic iPhone shipments jumped to astir 50 million. The iPhone 13 started beardown with robust pre-orders. The institution besides skirted past immoderate of the constraints that wounded different smartphone vendors by utilizing its retail stores to propulsion sales.

"But Apple's show goes acold beyond the iPhone 13," said Canalys probe expert Le Xuan Chiew. "For example, it sustained the momentum of the iPhone 12 with wholesale discounting down the scenes. It is making accelerated advancement with caller B2B transmission initiatives astir the world. And it continues to curry favour with web operators, helping to thrust their idiosyncratic bases toward 5G, and getting iPhones prioritized successful their portfolios."

Chinese vendors Xiaomi, OPPO and Vivo took location the remainder of the apical 5 spots. Xiaomi came successful 3rd adjacent though its shipments fell for the quarter. OPPO and Vivo some scored an summation successful shipments.

"Xiaomi besides saw request outstrip supply, but this was partially owed to a blockbuster show successful the erstwhile quarter, which depleted disposable stock," Stanton said. "In contrast, OPPO and Vivo had a rebound successful Q3 aft COVID ravaged halfway markets successful South Asia successful the erstwhile quarter."

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