"Global Smartphone Production to Recover to Pre-Pandemic Levels Next Year"... Samsung Electronics Maintains No.1 Position

TrendForce: Global Production to Reach 1.39 Billion Units Next Year, Up 3.8% YoY
Samsung Electronics Grows 1.1% to 276 Million Units, Maintains Top Position

[Asia Economy Reporter Eunmo Koo] It is forecasted that global smartphone production will recover to pre-COVID-19 pandemic levels next year.

On the 17th (local time), market research firm TrendForce predicted that global smartphone production will grow by 3.8% compared to this year, reaching approximately 1.39 billion units next year.

TrendForce assumed that the global economy will gradually recover from the effects of the pandemic, and with the typical replacement cycle of mobile devices and additional demand from emerging markets, smartphone production next year is expected to return to pre-pandemic levels.

Production of 5G smartphones is also expected to continue its growth trend, expanding to about 660 million units, accounting for 47.5% of the total smartphone market. However, as semiconductor demand continues to increase across various sectors including smartphones, servers, Internet of Things (IoT), and electric vehicles, the supply of related components is expected to influence changes in market share among companies.

By company, Samsung Electronics is projected to maintain its top position with a market share of 20%, producing 276 million units. However, TrendForce noted that demand in emerging markets tends to focus on budget models, which could pose challenges for Samsung in maintaining its market share. Although Samsung is increasing the outsourcing ratio of device manufacturing to improve cost competitiveness in mid-to-low-end models, its product lineup is not solely concentrated on budget models. TrendForce also forecasted that Samsung’s expected production growth rate next year will be 1.1%, the lowest among the top five companies.

Apple is expected to produce 243 million units, a 5.4% increase from this year, securing an 18% market share and following Samsung. TrendForce expects Apple to expand its influence in the mid-to-low-end market and increase its market share through the launch of the 'iPhone SE (3rd generation SE)' in the first quarter of next year, which will feature the A15 system-on-chip (SoC) and support 5G connectivity. However, it added that rising component prices and the necessity to maintain profitability through price increases could act as growth-limiting factors.

The three Greater China companies?Xiaomi, Oppo, and Vivo?are expected to expand their market share mainly through overseas sales, as demand in the Chinese domestic smartphone market is unlikely to increase significantly. In particular, Xiaomi, which entered overseas markets relatively early, is expected to benefit from overseas sales growth and record the highest growth rate among the top five smartphone manufacturers. Xiaomi’s expected smartphone shipments next year are 220 million units, a 15.8% increase from this year, while Oppo and Vivo are expected to ship 208 million and 149 million units, up 2.5% and 6.4%, respectively.

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