The health crisis and the chip crisis have not affected a smartphone market that is in good health, judging by the turnover generated in 2021 by companies in the sector. According to the data processed by Counter Point Researchupdated to Q4 2021, on total turnover reached the $ 448 billion markwith a increase of the 7% on an annual basis.
In Q4 2021, the increase in total revenue on a quarterly basis was 20% – a partly predictable result, considering that this period of the year is favorable for purchases, both for the renewal of the offer, and for the inevitable christmas shopping. Results worthy of note even more so if they are compared with those of previous years and it is considered that the two crises mentioned at the beginning have conditioned the possibility of fully satisfying demand.
The average selling price of smartphones in 2021 it was $ 322, 12% higher than the previous year. The explanation is partly to be traced back to 5G smartphones, which generated over 40% of total turnover in 2021. They are inevitably more expensive than 4G models and have had a greater diffusion: in emerging markets (India, Southeast Asia, Latin American countries and Central Europe) thanks to the main Chinese brands (Xiaomi, Vivo and Oppo) and in those markets mature with Apple and its iPhone 13 range.
A growing global smartphone market, but concentrated in the hands of a few. Just consider who the aforementioned $ 448 billion is responsible for: five brands generated $ 375 billion, all the others produced a total of $ 73 billion. The 2021 turnover of the five main companies in the sector is structured as follows (in brackets the variation on an annual basis):
- Apple, $ 196 billion (+ 35%)
- Samsung, $ 72bn (+ 11%)
- Oppo (including the OnePlus brand from Q3 3021), $ 37 billion (+ 47%)
- Xiaomi, $ 36 billion (+ 49%)
- Alive, $ 34bn (+ 43%)
The aforementioned increase in the average selling price of smartphones already provides a basis from which to respond. The thing to think about is that some OEMs have also raised the prices of entry level and mid-range products. In these cases, the price increase is not, or not only, 5G connectivity, but also the scarcity of components and the costs associated with the sale of the product – think of transport.
