{Disarmed} Global chip scarcity will have an even bigger impact on smartphones

Xiaomi Mi Note 10

The shortage of chips and other electronic components affected several industries over the past year, with smartphones having only been marginally affected so far. However, according to a new report, the situation could get worse.

Counterpoint Research assumes that the chip shortage "hits the smartphone industry hard", which is why the forecast for smartphone sales in 2021 has been reduced from 1.45 billion units to 1.41 billion units. Part of this change is due to some smartphone makers selling lower volumes in the second quarter, an issue that only worsened in the third quarter.

Some smartphone manufacturers are currently reporting that they are only getting around 70 percent of the quantities requested, up from 80 percent in the second quarter. Counterpoint believes 90 percent of the smartphone industry is affected by this problem.

"... some smartphone OEMs and distributors report that they only received 80% of the quantities of key components they requested in the second quarter of 2021, and the situation appears to be getting worse in the third quarter of 2021. Some smartphone manufacturers now state that they only received 70% of their requests, which leads to numerous problems. Counterpoint Research assumes that 90% of the industry will be affected, which will affect the forecast for the second half of 2021. "

Apple is reportedly "most resilient" when it comes to processor bottlenecks. Meanwhile, smartphone makers like Samsung, Xiaomi and Oppo have been hit by the lower exploitation rates at Qualcomm and MediaTek. An example of this impact could be the Galaxy S21 FE , which has apparently been deleted due to the lack of chips.

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Counterpoint Research

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