Friday, 01 October 2021 09:47

Semiconductor shortages hitting smartphone industry hard: claim

Semiconductor shortages hitting smartphone industry hard: claim Image by Monoar Rahman Rony from Pixabay

Smartphone shipments are set to drop globally due to semiconductor shortages, with technology analyst firm Counterpoint Research forecasting that the total units shipped for the calendar year would be about 1.41 billion, an increase of 6% year-on-year.

An earlier prediction had said there would likely be 9% growth year-on-year for a total of 1.45 billion units.

Counterpoint said the smartphone industry had been set for a rebound from 2020, with vendors placing large orders for components from the end of 2020 onwards. Consumer demand, due to purchases that had been put off, shored up the market in the first quarter of 2021.

But then came reports from some OEMs that they had received only 80% of orders made for key components during the second quarter, and this fell even more during the third quarter, with some manufacturers claiming they were only getting 70% of their orders.

Counterpoint said shortages of semiconductors had surfaced as far back as the last three months of 2020, but advance planning and hoarding of some components like application processors and camera sensors had helped keep manufacturers to keep output going.

smartphone 2021 shortages

About 90% of the industry was believed to be affected by the shortages and this would affect second half forecasts, the firm said.

Research director Tom Kang commented: “The semiconductor shortage seems to affect all brands in the ecosystems. Samsung, OPPO and Xiaomi have all been affected and we are lowering our forecasts.

"But Apple seems to be the most resilient and least affected by the AP shortage situation”.

The shortage of APs was triggered by low yield rates in newly established fab lines.

"With the situation seeming to persist it caused a chain reaction throughout the industry. AP vendors like Qualcomm and Mediatek rely on these foundries and manufacturing problems result in fewer processors supplied which in turn affects smartphone OEMs," Counterpoint said.

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here


It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site and prominent Newsletter promotion and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinatrs and campaigns and assassistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.



iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.


Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous