Research company IDC tipped smartphone shipments to hit a six-year high at the end of 2021, amounting to 1.38 billion units, with the segment driven by consumer demand for 5G devices which are gradually reducing in price.

In a statement, IDC forecast a 7.7 per cent year-on-year shipments rise, the highest level of annual growth since 2015. This trend is tipped to continue into 2022, with growth of 3.8 per cent to 1.43 billion units.

IDC predicts shipments of 5G models will increase by nearly 130 per cent in 2021, with almost all regions outside of China clocking triple-digit growth.

Apple pressure
Ryan Reith, programme VP with IDC’s Worldwide Mobile Device Tracker, noted a strong supply-side push towards 5G, with falling prices as a result.

The company expects Android ASPs to decline 12 per cent to $456 this year “and then below $400 in 2022”, Reith stated, adding Apple “will continue to feel the price pressure”.

Stronger demand for low- and mid-range 4G models in emerging markets is also cited as a driver of 2021 shipments.

IDC added it did not expect the smartphone market to be as impacted by a global chip shortage as other industries including automotive, PC and various consumer technology categories.

“Smartphones are seeing competition for consumer spending from adjacent markets like PCs, tablets, TVs, and smart home devices, yet that hasn’t slowed the market’s path to recovery,” added Reith.