Market analyst firm Canalys has predicted the 12 percent growth of smartphone shipments in 2021. This is up when comparing with the seven percent drop in the shipments reported in 2020.

Smartphone market globally will grow 12 percent in 2021, with shipments reaching 1.4 billion units, according to a report. The growth forecast depicts a strong recovery in smartphone shipments from 2020, when the market saw a dip due to the COVID-19 pandemic.

A major part of the growth — 18 percent to be precise — will come from Latin America, followed by Greater China; Europe, Middle East, and Africa (EMEA); and Asia Pacific, according to the prediction made by Canalys.

Manufacturers are expected to bring their new 5G phones this year that will contribute towards the widening of the market.

The shipments of 5G phones are also predicted to overtake 4G phone shipments as early as 2022.

Although COVID-19 vaccine rollout and contraction in the infection cases around the world are expected to help bring positivity in the worldwide smartphone market, component supply bottlenecks are predicted to limit the growth potential to some extent.

“Innovations driven by COVID-19, such as unified stock and delivery to car, are helping shift retailers toward their consolidated omnichannel vision,” said Canalys Research Manager Ben Stanton. “And centralised procurement will also give the channel more negotiating power with smartphone brands and may cause some retailers to attempt to bypass distribution to build new direct relationships. The new normal for the smartphone industry is as ruthless and competitive as the old one.”

Components such as chipsets and memory are expected to receive an increase in prices that could lead smartphone vendors to decide whether to absorb the increment in the cost or pass it on to consumers. The constraints around LTE chipsets are also likely to bring difficulty for vendors targeting particularly at the low-end market segment.

International Data Corporation (IDC) also earlier this year predicted that global smartphone shipments would grow by 5.5 percent in 2021 and 5G phones would account for 40 percent of the total shipment volume.

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China is expected to take the lead in 5G smartphone shipments in 2023, an industrial report showed. Nearly 800 million 5G smartphones will be delivered in 2023 globally, while China's mainland, Taiwan, Hong Kong and Macao might account for 34 per cent of the total shipments, global technology market analyst firm Canalys said in a recent report.

Canalys forecasted that in 2020, 17.5 per cent of smartphones shipped in China will be 5G-capable, and this percentage will rise sharply to 62.7 pct in 2023. "Chinese operators' investment in 5G will reach 5 billion U.S. dollars this year, and around 70,000 to 90,000 5G base stations will be built across the country," said Canalys Analyst Mo Jia. Canalys pointed out that government initiatives to accelerate 5G development are a powerful and effective driver for faster roll-out in some markets, such as China.

"China is also home to many major 5G equipment suppliers and smartphone vendors, which will be responsible for an aggressive marketing push over the next few years," says Nicole Peng, Vice President of Mobility at Canalys. The full 5G deployment will take much longer and be much more complex than the previous network generation to realize the benefits of 5G beyond enhanced mobile broadband, Peng added.

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