Driven by falling 5G prices and increasing 5G demand, smartphones are expected to reach their highest point this year since 2015, according to new research from International Data Corp. (IDC).
The smartphone market is forecast to reach 1.38 billion units in 2021, an increase of 7.7 percent over 2020. This growth will continue into 2022 with year-over-year growth expected to be 3.8 percent with shipments totaling 1.43 billion units.
5G is expected to become the dominate generation of smartphones begging in 2022. However, demand for mid-range and low-end 4G phones following last year’s pandemic slowdown also remains strong.
However, through 2025, 5G will take a greater market share of smartphone shipments. 5G shipments are expected to grow nearly 130 percent in 2021, with nearly all regions outside of China seeing triple-digit growth by the end of this year. But long-term, China will lead the way with nearly 50 percent share of 5G shipments in 2021 while the U.S. will follow with a 16 percent share. Other regions will combine for a 23.1 percent share of worldwide 5G market by the end of 2021.
Prices for 5G phones continue to drop in 2021 to $456. Further drops to $400 is expected in 2022.
Source: electronics 360