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Component shortage becomes a massive threat for Smartphone Industry
Component scarcity has become a major concern to the smartphone industry.

Component shortage becomes a massive threat for Smartphone Industry

Component shortage becomes a massive threat for Smartphone Industry
Image Credits: NextPit

Since the COVID-19 epidemic decimated the planet, the IT sector has been concerned about component shortages. Smartphones, like other segments, have experienced the same fate.

Because of slower manufacturing schedules, the supply has shrunk and releases have been postponed. According to Gartner, all of this has resulted in a drop in smartphone sales in the third quarter of 2021 compared to the third quarter of last year.

According to the report’s figures, consumer sales have declined by 6.8 percent. The global production of smartphones has been hampered by a reduction in components such as integrated circuits for power management and radiofrequency.

“Despite high consumer demand, smartphone sales dropped owing to delayed product releases, lengthier delivery schedules, and insufficient channel inventories,” said Anshul Gupta, senior research director at Gartner.

Samsung gets the throne

According to Gupta, supply chain difficulties hampered the manufacturing schedules of “basic and utility” phones more than “luxury” ones. This is why luxury smartphone sales soared over this period, despite total smartphone sales declining.

According to the research firm’s assessment, this left shoppers with little alternatives. All because of its new range of fold smartphones, Samsung was able to secure the top rank with the largest market share (20.2 percent). In comparison to the third quarter of 2020, the firm was unable to sell more units.

Apple may make a strong return

Following the release of the new iPhone series, Apple achieved a quarterly market share of 14.2 percent. The key reason is reported to be its new A15 chipset, which enhances battery and camera performance.

Gartner also notes interest in 5G. Previously, Apple stated that its income increased across all product categories; nevertheless, these figures failed to excite investors, who expected even greater rises.

Apple’s entire sales increased by 29% to $83.36 billion, with the flagship iPhone increasing by 47% year on year to $38.87 billion. CEO Tim Cook attributed the low sales on a worldwide chip bottleneck.

He also cited coronavirus-related production challenges in Asia for the company’s sales falling slightly short of expectations.

Because supply issues are expected to worsen in the coming months, experts anticipate Apple will be unable to create enough iPhones to fulfill demand throughout the quarter.

Even PCs will face the consequences

Smartphones aren’t the only technology that’s still dealing with component shortages. According to analysts, due to supply chain issues, PCs will be difficult to find this holiday season.  The market in the United States fell in the third quarter of 2021 compared to the third quarter of 2020.

Chromebook demand has also fallen substantially as individuals have begun to return to in-person schooling and employment. The research group forecast in May that the worldwide chip deficit will end by the second quarter of 2022.

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