Supply shortages continue to stunt global smartphone growth in Q3

Gartner said the component shortage of radio frequency and power management integrated circuits has delayed smartphone production globally

Global smartphone sales have dipped according to the latest findings from Gartner.

Sales to end-users have dropped 6.8 per cent to 342.2 million units shipped in the third quarter of 2021, compared to the same time period in 2020.

The analyst blamed the drop on component shortages disrupting production schedules, leading to lower inventory and delayed product availability, which eventually impacted sales to end-users.

"Despite strong consumer demand, smartphone sales declined due to delayed product launches, longer delivery schedule and insufficient inventory at the channel," said Gartner senior research director, Anshul Gupta.

"Supply constraints impacted the production schedule of basic and utility smartphones much more than premium smartphones."

Gartner added the current shortage of components, such as radio frequency and power management integrated circuits, delayed smartphone production globally.

This derailed the supply-demand equilibrium and end-users were burdened with limited choices at point of sale.

Sales of premium smartphones continued to grow, however, even though overall smartphone sales declined in the quarter.

Samsung stays on top

On the vendor side of things, Gartner's data found that Apple reclaimed the number two position, shipping 48.4 million units in Q3.

Apple continued to experience strong demand for iPhones led by compelling feature upgrades and underpenetrated 5G installed base.

The vendor continues to revamp its online channel and position trade-in programs to accelerate demand for its 5G iPhones through the rest of 2021.

Chinese smartphone giant Xiaomi slipped back into third place, shipping 44.4 million units.

The research firm said its strong online channel-led strategy for market expansion in Europe and the Middle East and partnering with communication service providers in these regions helped the company increase its global smartphone market share in Q3.

Samsung maintained its overall lead in smartphone sales, though its market share declined 1.9 per cent year on year.

Gartner added that even with the overall decline, Samsung experienced growth of its premium smartphones, led by strong demand for revamped foldable smartphones.

Moreover, Chinese smartphone vendors Xiaomi, Vivo and OPPO increased their market share one per cent, 2.4 per cent and 1.7 per cent respectively, year on year.