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Smartphone cargo forecast for 2021 lowered because of chip scarcity, Counterpoint says

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Computer chips that kind a vital a part of all electronics, have been in brief provide for the reason that final quarter of 2020

Smartphone shipments within the second half of 2021 is anticipated to develop by solely 6% yearly, down from the sooner forecast of 9%, analysis agency Counterpoint mentioned on Thursday.

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Total items shipped within the second half of 2021 is now anticipated to develop to 1.41 billion items from the sooner steering of 1.45 billion items, primarily as a result of persevering with semiconductor scarcity that has effects on over 90% of the smartphone trade, the analysis agency famous.

Computer chips that kind a vital a part of all electronics, have been in brief provide for the reason that final quarter of 2020. The scarcity continues regardless of foundries working at full capability for a number of quarters, affecting smartphone corporations greater than ever, Counterpoint added.

Counterpoint had earlier estimated that the trade was set for a robust rebound this 12 months after COVID-19 had hit the market exhausting in 2020. However, some smartphone OEMs and distributors are reporting that they solely obtained 80% of the requested volumes on key elements throughout the second quarter of 2021. Some smartphone makers at the moment are saying they solely obtain 70% of the requests, the analysis agency famous.

The scarcity of utility processors, one of the crucial essential parts in smartphones, was triggered by low yield charges in newly established fab strains. Major distributors like Qualcomm and Mediatek depend on these foundries, and manufacturing issues end in fewer processors equipped which in flip impacts smartphone OEMs.

“The semiconductor scarcity appears to have an effect on all manufacturers within the ecosystems. Samsung, Oppo, Xiaomi have all been affected and we’re decreasing our forecasts. But Apple appears to be essentially the most resilient and least affected by the AP scarcity state of affairs,” mentioned Tom Kang, Research Director at Counterpoint Research.

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