Apple continues to roll.
A new report by IDC says that smartphone shipment growth is expected to bounce back from the pandemic hit in 2020, and grow overall by 7.4%. Total shipments worldwide are estimated at 1.3 billion units according to the analyst firm.
With 14% growth predicted this year, Apple is outpacing the market. Handsets powered by Google’s competitor Android OS should come in at only 6%.
“The smartphone market was better prepared from a supply chain perspective heading into 2020 given almost all regions were expecting to grow and vendors were preparing accordingly,” said Ryan Reith, group vice president with IDC’s Mobility and Consumer Device Trackers. “2020 was a bust due to the pandemic but all of the top brands continued forward with their production plans with the main difference that the timeline was pushed out. Therefore, we are at a point where inventory levels are much healthier than PCs and some other adjacent markets and we are seeing the resilience of consumer demand in recent quarterly results.”
You can see in the above chart provided by IDC that by 2022 phones using the new 5G wireless technology will become the majority driving growth, with 3G fading completely.
Other key takeaways from the report include:
- Smartphone shipments are expected to slow and grow 3.4% for 2022 and 2023
- Average Selling Price (ASP) for a 5G smartphone will reach $634 in 2021 — essentially unchanged y/y
- Premium smartphone ($1,000+ USD) saw 116% y/y growth, suggesting consumers are increasingly willing to pay higher prices for smartphones with advanced features
The iPhone accounted for $39.6 billion in revenue for Apple’s most recent quarter ending July.
In addition to refreshed MacBooks, Apple is unveiling the iPhone 13 later this year. Heading into the key holiday season it will be a bellwether for the market and something to watch closely.