Apple appears to be the seller least affected by supply and demand limitations.
HIGHLIGHTS
Smartphone shipments are being hampered by supply-demand restrictions.
In 2023, the market is predicted to rebound with a 5% increase.
By 2026, the average selling price of 5G phones will fall, while their market share will rise.
According to a research, global smartphone shipments are predicted to drop 3.5 percent to 1.31 billion units in 2022. "Increasing obstacles in both supply and demand" have been blamed for the drop. As a result, original equipment manufacturers such as Apple and Samsung have reduced their orders for the coming year. Apple, on the other hand, appears to be the least affected provider, according to the market research agency. In 2022, 5G gadget sales are predicted to increase by 25.5 percent year over year (YoY).
Global smartphone shipments are likely to drop 3.5 percent this year, according to IDC's Worldwide Quarterly Mobile Phone Tracker. After shipments dropped for three consecutive quarters due to increased problems in both supply and demand, IDC has dramatically reduced its prediction for 2022 from the prior expectation of 1.6 percent growth. However, this is only likely to be a temporary setback, as the industry is expected to increase at a CAGR of 1.9 percent over the next five years, through 2026.
The smartphone sector is being hurt by "weakening demand, inflation, prolonged geopolitical tensions, and persisting supply chain restrictions," according to Nabila Popal, research director at IDC's Worldwide Mobility and Consumer Device Trackers. This, together with China's restrictions, has had a significant impact on smartphone shipments. "The lockdowns affected worldwide demand and supply at the same time, decreasing demand in the world's largest market and increasing the bottleneck in an already stressed supply chain," Popal added.
According to IDC, these issues will diminish by the end of the year, and the market will return with 5% growth in 2023.
Many OEMs, including Apple and Samsung, have been forced to scale back orders for this year due to supply and demand issues. Apple, according to the study director, looks to be the seller with the least influence. Because Apple has more control over its supply chain, this is the case. Another explanation for the Cupertino-based company's lower effect is that the bulk of its high-priced consumers are less impacted by macroeconomic factors like inflation.
While 4G SoC supply has been constrained, another IDC research director said that the industry is continuing to transition towards 5G SoCs. "A major issue has been a scarcity of components like PMICs, display drivers, and discrete Wi-Fi processors. The capacity of these semiconductors built at higher process nodes is being expanded, and fresh versions of Wi-Fi chips are being made using newer process nodes. Demand, on the other hand, is dwindling. The market will be more balanced as a result of these supply and demand adjustments, according to Phil Solis, research director for IDC's Enabling Technologies and Semiconductors team.
With over 700 million devices and an average selling price (ASP) of $608, 5G devices are expected to expand 25.5 percent YoY in 2022, accounting for 53 percent of new shipments (roughly Rs. 47,150). In 2026, 5G is predicted to have a volume share of 78 percent and an ASP of $440. (roughly Rs. 34,100). In 2022, the average selling price of 4G phones is predicted to be $170 (approximately Rs. 13,200), reducing to $113 (about Rs. 8,760) by the conclusion of the projection period.
In terms of regional segregation, the most significant drop in 2022 is projected in Central and Eastern Europe, with shipments falling by 22%. China's cargo volume is expected to drop 11.5 percent this year, accounting for almost 80 percent of the worldwide drop. Western Europe is anticipated to lose 1% of its population. Other areas, such as Asia/Pacific (excluding Japan and China), will, on the other hand, have positive development this year (about 3 percent).
