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Saturday, November 27 2021

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Apple regains 2nd spot in global smartphone market, Xiaomi slips to 3rd

Apple regains 2nd spot in global smartphone market

New Delhi: Apple regained second place in the global smartphone market with 15 per cent share in the third quarter (Q3) this year, thanks to strong early demand for iPhone 13, a new report showed on Friday.

Samsung was the leading smartphone player with 23 per cent share. Xiaomi took 14 per cent share for the third place. Vivo and OPPO completed the top five with 10 per cent share each. Preliminary data was provided by global market research firm Canalys.

Global smartphone shipments fell 6 per cent in the third quarter (July-September period) this year. Vendors have struggled to meet the demand for devices amid component shortages.

“And now,  the chipset famine has truly arrived. The smartphone industry is striving to maximise the production of devices as best it can. On the supply side, chipset manufacturers are increasing prices to disincentivize over-ordering. This is an attempt to close the gap between demand and supply,” said Canalys Principal Analyst, Ben Stanton.

Despite this, “shortages will not ease until well into 2022. Global freight cost has also increased. Therefore Smartphone brands have reluctantly pushed up device retail pricing”, Stanton stated.

“At the local level, smartphone vendors including Apple are also having to implement last-minute changes in device specification and order quantities. It is critical for them to do this and maximise volume capacity. It does lead to confusion and inefficiency when communicating with retail and distributors,” he added.

Many channels are nervous heading into important sales holidays, such as Singles’ Day in China, and Black Friday in the west.

“Channel inventories of smartphones are already running low. As more customers start to anticipate these sales cycles, the impending wave of demand will be impossible to fulfil,” Stanton added.

Customers should expect smartphone discounting this year to be less aggressive.

“But to avoid customer disappointment, smartphone brands which are constrained on margin should look to bundle other devices, such as wearables and IoT, to create good incentives for customers,” Stanton said.

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