Global phone market shrinks 6% due to component shortages

The global phone market is feeling the effects of the component shortages. 

Research firm Canalys shared that the global phone shipments fell 6% in Q3 as phone makers struggled to meet demand amid component shortages. Canalys added that channel inventories of phones are running low and the upcoming sales holidays will widen the gap between demand and supply.

Chip makers are said to be increasing prices to prevent phone makers from over-ordering. However, component shortages are expected to last well into 2022. This could lead to more expensive phones and PCs next year according to Nikkei Asia.

Earlier this year, Reuters reported that the global chip shortage is expected to hit phone shipments with Qualcomm struggling to meet demand for its chipsets. TSMC, the world's biggest semiconductor foundry, warns the chip shortage will continue through 2022.

Samsung maintained the top position with 23% market share, unchanged from the same period a year ago. Apple managed to increase its market share by 3% and regained the second position, thanks to strong demand for the iPhone 13. Rounding up the top five are Xiaomi (14%), Vivo (10%) and Oppo (10%). 

Source: Canalys

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