Huawei to Drop to 7th in Smartphone Rankings This Year... Samsung Electronics Remains No. 1

[Asia Economy Reporter Joselgina] Chinese tech giant Huawei, which is under strong sanctions from the U.S. government, is expected to fall to 7th place in the global smartphone market this year. Samsung Electronics and Apple are projected to maintain their 1st and 2nd place rankings from last year, respectively. In particular, Apple's dominance in the 5G smartphone market is anticipated, following the launch of the iPhone 12.

According to Taiwanese market research firm TrendForce on the 6th, the global smartphone market size in 2021 is estimated at 1.36 billion units, representing a 9% increase compared to the previous year. The pent-up demand that had been suppressed is expected to surge, leading to a recovery in smartphone production compared to 2020, which was severely impacted by the COVID-19 pandemic.

However, Huawei's production volume is expected to drop from 3rd to 7th place. This is due to the combination of strong U.S. sanctions and the sale of its mid-to-low-end brand Honor. Huawei's annual smartphone production is forecasted to plummet from 170 million units last year to around 45 million units this year. Instead, Chinese brands Xiaomi, Oppo, and Vivo are expected to benefit and each move up one rank.

Samsung Electronics' smartphone production is estimated to remain in 1st place with 267 million units, following last year. Apple is expected to produce 229 million units, and Xiaomi 198 million units. TrendForce noted, "As people adapt to the new normal caused by COVID-19, the smartphone market will gradually recover," citing demand from emerging markets and device replacement as key factors.

Especially in the 5G market, where growth is expected, Apple is recording remarkable results. Apple's 5G market share reached 31% last year with the launch of its first 5G smartphone, the iPhone 12. This is expected to increase to 35% this year. In contrast, Samsung Electronics' 5G market share is projected to rise only from 11% last year to 13% this year, trailing behind China's Oppo, which is expected to hold 14%. It is on par with China's Vivo, which is also expected to have a 13% share. TrendForce forecasts Huawei's 5G market share to shrink from 30% last year to 8% this year.

Additionally, the 5G smartphone penetration rate is expected to expand to 37% this year. TrendForce added, "COVID-19 can still be a significant variable in the smartphone market."

Meanwhile, global smartphone production last year, during the COVID-19 pandemic, was recorded at 1.25 billion units, an 11% decrease compared to the previous year. By manufacturer, the rankings were Samsung Electronics (263 million units), Apple (199 million units), Chinese Huawei (170 million units), Xiaomi (146 million units), Oppo (144 million units), and Vivo (110 million units).

This content was produced with the assistance of AI translation services.