According to a report released by International Data Corporation on the Global Smartphone Market Forecast for the year 2021, 5G smartphones will dominate the global market even as the market continues to grow.
In the report, the worldwide smartphone market will grow 13.9% YoY in Q1 2021. Also, the market will witness 5.5% YoY growth throughout 2021 even as it expects a 3.6% compound annual growth rate (CAGR) from 2020 to 2025.
The report also says that all the parties involved, namely supply chains, OEMs, channels, and consumers are better prepared to face new lockdowns. That’s because these parties adapted to the pandemic last year. As a result, the market share of online channels rose to 27% in 2020, up from 20% in 2021.
Therefore, as per IDC, improved channel planning and strong pent-up demand will help the market grow in the coming months. However, smaller vendors may get affected temporarily. Because all the vendors are pushing to increase their production due to a strong performance in the last quarter of 2020 and ODMs give higher priorities to larger vendors.
As mentioned in the beginning, 5G will play an important role in the growth of the global smartphone market, thanks to the success of the iPhone 12 series. IDC predicts that 5G handsets will account for 40% of the entire market in 2021 and 69% in 2025.
But at the same time, the ASP (Average Selling Price) of the overall market has increased to $363 in 2021 compared to IDC’s previous forecast of $349. On the other hand, the good news is that the ASP of 5G smartphones is expected to drop to $404 in 2025.
Lastly, the world’s largest smartphone markets, China and the United States are forecasted to grow 5% and 3.5% in 2021 despite declining 10-11% YoY in 2020.
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