Android and Apple: Component shortages will not affect the growth of the smartphone market

The International Data Corporation (IDC) agency has published a new forecast for the evolution of the global smartphone market, covering the period from 2020 to 2025. Whether in the Android or Apple (iOS) hemisphere, the trend will be one of growth! !

According to market analysts, the market mobile will continue to grow in sales volume and capital involved. In this way, it will become one of the most profitable segments of the global economy, escaping unscathed from the current problems that affect it.

Android or iOS (Apple), the market will grow until 2025, says IDC

Apple's Android smartphone IDC
Infographic with the expected evolution of the market until 2025. Credit: IDC

The market is currently facing a component shortage crisis due to the inability of manufacturers to produce chips and semiconductors in the required quantities. The topic crosses several areas of activity, from the automotive sector to the mobile.

However, IDC believes that this problem will not stop the growth of the smartphone industry. On the contrary, the analysis agency believes that between 2020 and 2021 the market will grow by 7.4%, reaching 1.37 billion smartphones sold.

Likewise, between 2022 and 2023 the mobile device market is expected to grow by 3.4%, maintaining the upward trend.

Strong growth in the Android and iOS segment in 2021

Android

Also according to IDC, in 2021 the Android segment should increase sales volume by 6.2%. It’s solid growth, but it may pale in comparison to the 13.8% expected growth for the iOS segment with Apple’s iPhone.

At the same time, smartphones and tablets equipped with support for fifth generation (5G) mobile networks it will be one of the main growth engines of the market. More specifically, in 2021 the volume of 5G devices will increase by 123.4% compared to the metrics registered in 2020. Therefore, we will have up to 570 million units (5G) sold in 2021.

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Even more, the half price of 5G smartphones, according to analysts, should not undergo significant changes compared to the average recorded in 2020. More specifically, it will go from $ 632 to an average of $ 634 by the end of 2021.

4G smartphones will get cheaper with the popularization of 5G

Apple iPhone 12

As 5G takes the lead in the market mobile, units limited to 4G will gradually become cheaper. This will translate into cheaper Android smartphones in the entry-level segment, reducing the average price from $ 277 to $ 206 between 2020 and 2021, respectively. Therefore, it will be a 30% decrease in the average price of 4G smartphones.

By the end of 2022, 5G smartphone models are expected to account for more than half of all sales. More specifically, up to 54.1% of all smartphone units sold over the next year, thus becoming the majority.

The market mobile dodged component shortage

The smartphone market was better prepared from a production perspective at the start of 2020. Considering that all major regions and manufacturers were already taking precautions for this issue, production was less affected. ” So says Ryan Reith, IDC vice president of consumer and mobile devices.

The Executive points out that despite the restrictions found, most manufacturers had already taken various measures to minimize the impact of this problem. In this way, the majority managed to continue producing their products at very healthy levels.

The same cannot be said for the automobile segment, not even for the information technology segment. Therefore, IDC is quite optimistic about the growth of this market.

In short, the market mobile it will grow quite significantly. Even the lack of components will not significantly affect this trend until 2025.

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