H1: US Smartphones Grow 27% in First Half Amid 5G Boom... Chinese Low-Cost Competition

Apple grows 53%... Samsung also grows 17%
Samsung secures T-Mobile campaign but
due to supply shortages, passes ball to China OnePlus

Samsung Galaxy A32 model. Photo by Samsung Electronics

[Asia Economy Reporter Cha Min-young] The U.S. smartphone market in the first half of this year recorded a sales growth of 27% compared to the previous year, driven by mobile carriers' efforts to expand the distribution of 5G phones.

Counterpoint Research announced on the 29th that the U.S. smartphone market sales in the first half of 2021 increased by 27% compared to the same period last year. Apple and Samsung devices posted sales growth of 53% and 17% respectively in the premium segment, while OnePlus (428%), Motorola (83%), and Nokia (35%) also showed strong growth by filling the gap left by LG Electronics.

2021 was considered a challenging year for Original Equipment Manufacturer (OEM) companies. Market consolidation due to the exit of LG Electronics and VinSmart, demand from mobile carriers for affordable 5G smartphones, and supply constraints caused by global component shortages all coincided.

Jeff Fieldhack, lead researcher, stated, "This complex situation provided a great opportunity for OEM companies aiming to expand their market share," adding, "OEM companies such as OnePlus, Motorola, and Nokia did not miss this growth momentum." He particularly pointed out that for devices priced under $600, the tight supply of Android phones including Samsung's created opportunities for latecomers.

In fact, the Chinese smartphone company OnePlus benefited indirectly from Samsung's supply shortage. Fieldhack explained, "Samsung's low-end model 'Galaxy A32 5G' was a big hit in T-Mobile's '5G for All' campaign, but due to supply and design issues, T-Mobile switched its large-volume 5G switcher device to the 'OnePlus N200,'" analyzing that "this helped OnePlus expand its base and gain an early advantage amid LG's market exit."

The OnePlus N200 model is also regarded as one of the fastest 5G phones in the world. Based on this price competitiveness, OnePlus is strengthening its position. Senior analyst Morris Klein said, "OnePlus further expanded its position in the second quarter due to LG's exit from the smartphone market," and evaluated, "The 'OnePlus N100' model was one of the best-selling smartphones within Metro for several months."

There are many demand drivers for U.S. smartphones in the second half of the year. If the acquisition of TracFone by major carrier Verizon is completed, millions of T-Mobile and AT&T subscribers will have to move to Verizon, which is expected to generate significant demand for mid- to low-priced smartphones. T-Mobile plans to shut down Sprint's 3G CDMA network as of January 1 next year, and Verizon is also scheduled to end CDMA in December 2022, raising expectations for increased demand for new smartphones.

Concerns about supply constraints from manufacturers continue into the second half of 2021. Researcher Hanish Bhatia explained, "Manufacturers are unable to meet carriers' demand for specific smartphone models due to component shortages, while focusing on certain particular models."

He added, "The current global component shortage is pressuring inventory levels in the U.S. market, but global manufacturers seem to be prioritizing the U.S. market," evaluating that "Samsung shifted its supply focus from mid-range A series to the premium market, and Apple's supply chain performed well, showing good inventory status in the first half."

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