What Can We Expect From The Smartphone Industry In 2022?
Smartphone shipments suffered during the pandemic that began in 2019, but they surprisingly returned in 2020 and continued to improve. Meanwhile, roadblocks such as chipset shortages stalled them, and the consequences are still being felt. While the semiconductor industry is presently short on chip manufacturing, prominent market analysts believe that by 2022, the situation will have improved to pre-pandemic levels.
According to an estimate by industry analyst TrendForce, all OEMs combined would ship around 1.39 billion phones in 2022, resulting in a 3.8 percent YoY growth rate. The key drivers will remain the same, with Samsung grabbing the lead once again, shipping roughly 276 million units and seeing a 1.1 percent YoY increase.
Mobile gaming grew significantly following the pandemic, as Grand Rush Online Casino and other top gaming outfits recorded massive mobile gaming numbers. These stats contributed largely to the acquisition of Smartphones in 2020 and 2021, a trend expected to carry on in 2022.
Although Samsung is projected to maintain its global lead over all other brands, industry analysts predict that the company will face tough competition in emerging regions owing to increased demand for entry-level models, an area where Samsung is cutting costs. Samsung’s Foldable series has helped the company maintain its market dominance in the high-end sector, and the study predicts this trend will continue next year.
The South Korean powerhouse, which generates profits from its semiconductor division, is said to be switching to Qualcomm for its next flagship Galaxy S-series in several markets where it previously sold Exynos-powered devices. This is due to in-house production challenges that the firm may not solve on its own.
Apple’s smartphone manufacturing is expected to reach 243 million units in 2022, marking a 5.4 percent YoY increase and the second-highest volume among all smartphone makers. According to the research, the debut of new devices in 2022, including the much-rumored iPhone SE and four standard generations, is expected to help Apple raise its market share next year.
Furthermore, according to the survey, Xiaomi might move up to third place in 2022, with a projected shipment of 220 million devices. The analysis also includes the brand’s subsidiaries, including Mi, Redmi, Poco, and Black Shark. Overall, the leading Chinese brand should expect to expand 15.8% year over year.
Oppo is ranked fourth on the list, with 208 million units expected to be added to the total number of goods in 2022, representing a 2.5 percent YoY increase. Finally, Vivo is expected to take fifth place next year, with about 150 million devices produced, representing a 6.4 percent increase year over year.
The survey also finds that only around 660 million of the 1.39 billion devices predicted to be produced would be capable of 5G connectivity. This is because not every area has completely embraced the technology for a variety of reasons and obstacles. As a result, 5G devices would have a market share of 47.5 percent in the entire smartphone market.
On the other hand, as the market share of 5G cell phones grows, so does the need for components. The increased shipment of servers, Internet of Things (IoT) devices, and electric vehicles (EVs) will make it much more difficult for foundries to create enough components for 5G phones, according to TrendForce, because foundry capabilities are already strained to their limits. This also means that smartphone manufacturers’ market share will be determined by their ability to book foundry capacity.