5G to dominate smartphone market growth in 2021: IDC

Due to the COVID-19 epidemic, many markets around the world have faced many challenges. While some have gained a lot from it, many have suffered losses, but it takes time to recover. Looking at the smartphone market, the sector has also fallen among the epidemics.

According to the latest report of IDC, the smartphone exports are expected to grow by 13.9 percent year-on-year in the first quarter of 2021 and 5.5 percent year-on-year in 2021. The push towards the demand and supply of 5G devices will contribute to this growth.

IDC expects the global smartphone market overall growth rate (CAGR) to reach 3.6% over the 2020-2025 forecast period.

The two largest global markets, China and the United States are expected to grow by 5.0 percent and 3.5 percent by 2021, respectively. Despite several lockdowns in the city in January 2021, China’s outlook remains consistent, reflecting the strength of consumer confidence.

Despite the 10-11 percent decline in both markets by 2020 between epidemics, the success of the 5G development and the recently launched iPhones are expected to boost exports by 2021.

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The 5G smartphone remains the driving factor in the industry, it accelerated further with the success of Apple’s full 5G iPhone 12 lineup. As expects 5G smartphone exports to exceed 40% of global volume by 2021 and 69% by 2025.

The increasing competition in the 5G ASP, 5G Android space, especially from Chinese sellers, is putting pressure on the bottom of the 5G ASP, which is expected to drop to $404 by the end of the 2025 forecast period.