2021 Smartphone Market Expected to Grow
March 12, 2021
Although last month we reported a decline in smartphone sales in 2020, numbers are looking up for 2021.
Consumer demand is expected to lead the recovery, in addition to the growth of 5G. $1400 stimulus checks may also make a difference to those who qualify but aren’t dependent on that money for basic goods and services.
Research firm IDC released data in early March that predicted a 5.5 percent growth for the smartphone market in 2021. This is welcome news to the manufacturers who lost out in the last quarter of 2020, which showed a 6 percent year-over-year loss. To sweeten the deal, IDC is predicting a whopping 14 percent growth in sales for the first quarter of 2021, compared to the same quarter last year. This is due to hardware manufacturers ironing out issues in the supply chain that occurred during the beginning of the Covid-19 pandemic. They’re better able to meet the continued demand for smartphones than they were a year ago.
The markets in U.S. and China, two of the world’s largest consumers of smartphones, are expected to grow by 5 percent and 3.5 percent respectively.
In addition to consumer demand, 5G is also a major player in the industry’s growth. Phones compatible with 5G are expected to account for more than 40 percent of the year’s sales, led by Apple’s most recent iPhone. The competition is fierce among Android OS 5G phones as well, which will drive down prices on those phones even as demand increases.
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