The global crisis that is affecting the supply of chips is unlikely to prevent the smartphone market from closing 2021 with a considerable increase compared to last year. Data from Canalys Consulting pointed out that sales are expected to total 1,4 billion by the end of December. This would represent a growth of 12% compared to 2020.

The positive balance represents the sector recovery, which saw a 7% drop in the segment when comparing 2019 and 2020, as a result of restrictions imposed mainly in the first months of Covid-19. The arrival of the vaccine and the relaxation of such measures contributed to the change in the scenario.

“The resilience of the smartphone industry is remarkable. Smartphones are vital to keeping people connected and entertained, and they are just as important in and out of the home. In some parts of the world, people have been unable to spend money on holidays and days off in recent months, and many have spent their disposable income on a new smartphone,” explained Ben Stenton, research manager at Canalys.

Stentau confessed that the chip supply crisis will have at least a small effect in the near future. According to the executive, “backlogs are increasing” and “brands will feel the squeeze”. This means that the 12% figure projected for smartphone market growth in 2021 would be even higher if there were no shortage of parts for semiconductor production.

5G explosion

The latest Canalys report also analyzed the future of the smartphone market with 5G technology, not only in 2021. And it bet that sales of cell phones in this segment will grow to the point of surpassing sales of 4G devices as early as 2022. “There is strong momentum behind 5G devices, and they accounted for 37% of sales in the first quarter,” revealed Ben Stenton.

According to the executive, total shipments of 5G cell phones in 2021 should reach 610 million units, representing 43% of the total sold in the year. “This will be driven by intense price competition between vendors, with many sacrificing other features, such as screen or power, to accommodate 5G in the cheapest device possible,” he predicted. According to Stanton, by the end of the year, 32% of smartphones available on the market will cost less than US$ 300 (R$ 1.527, in conversion).

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