There was room for even more growth
COVID-19 forced many countries to impose lengthy lockdowns and curbs in 2021, ravaging smartphone manufacturers’ supply chains. The ongoing semiconductor shortage did not help either, leading to a component shortage and availability issues. Despite these significant bottlenecks, the smartphone industry grew for the first time since 2017. The top five brands saw healthy growth in their smartphone shipments, with Apple, Xiaomi, Oppo, and Vivo posting double-digit growth and shipping a record number of smartphones.
Depending on whose numbers you believe, Counterpoint Research says global smartphone shipments grew by 4% year-over-year (YoY) to 1.39 billion units, while IDC claims the market grew by 5.7% to 1.35 billion, compared to 2020. However, both firms agree that shipments declined in the second half of the year due to the component shortage. If not for that crunch, the market would have grown even further in 2021.
Samsung retained its top spot in the market and shipped 271 million smartphones throughout the year — up 6% YoY. This was despite the company’s Vietnam factory being shut in June due to COVID-induced lockdown and other supply issues. Its mid-range Galaxy A and M series smartphones saw healthy demand, though Samsung faced strong competition from Apple and Chinese manufacturers in the US and South Asian markets. The launch of the Galaxy Z Flip3 and Fold3 in the second half of the year did help the company to grow in the premium segment.
Apple took the second spot and shipped a record 237.9 million iPhones in 2021. In the first half of the year, its growth was led by the strong demand for the iPhone 12 series in India, China, and Europe. Following the iPhone 13 series launch in late Q3, Apple became the top smartphone brand in China in Q4 2021 after six years. It also surpassed Samsung to temporarily become the biggest smartphone brand during the quarter.
Xiaomi posted the highest growth (31%) among all manufacturers and shipped a record 190 million units during the year, thanks to demand in India, Europe, and China; it sure is making the most of Huawei’s absence. Due to component shortage, its shipments declined in Q3 and Q4; otherwise, the numbers would have been even higher.
Oppo also had a terrific year growing by 28% compared to 2020 and shipping a record 143.2 million smartphones. Its products saw strong demand in China in the first half of the year, while shipments grew in Europe, South-East Asia, and the Middle East in the second half. Rounding out the top five, Vivo saw its smartphone shipments grow by 21% YoY, reaching a record of 131.3 million sold units in 2021. However, it did see its sales decline by 9% in the last quarter of the year and lost its number one spot in China to Apple.
Motorola could benefit from LG’s exit from the smartphone business in the US and was the fastest-growing brand of the year, though it did not make it to the top five.
The smartphone market is expected to further grow in 2022 due to the pent-up demand and the easing of the component shortage.
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