Semiconductor shortage leads to smartphone market shrinkage

Semiconductor shortage leads to smartphone market shrinkage

The global smartphone market is seemingly feeling the full weight of the shortage with respect to semiconductor that has of course been going on for quite the while now, as vendors continue to struggle in order to meet demand. With that said, Samsung actually happens to be the leading vendor in this case, with a share equaling that of 23%. Xiaomi also ended up losing the second place that it had gained earlier in this year to Apple as the brand grabbed the second place courtesy of the strong demand with respect to the iPhone 13.

Courtesy of this then, the Chinese brand stands at the third place with a market share of 14%. The forth and the fifth places are currently held by Vivo and Oppo – both of whom have a ten percent market share each.

An analyst has recently also claimed that the chipset famine has well and truly arrived : “The smartphone industry is striving to maximize production of devices as best it can. On the supply side, chipset manufacturers are increasing prices to disincentivize over-ordering, in an attempt to close the gap between demand and supply.”

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Unfortunately enough though, as it seems likely that the chip shortage will likely continue well into next year as well, despite these particular measures being taken. This then combined with the high global freight costs will end up pushing the device retail price even higher, as one would imagine.

Along with this then, the chip shortage is also actually prompting last-minute changes in respect of device specification and order quantities from the end of the smartphone vendor itself. This then is indeed critical from them due to the fact that they have to select from the existing pool of components within.

The whole situation seems so bizarre to be honest, and since there is the probability that it will likely continue, one wonders as to how long things will take to normalize.


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