What They Say
Counterpoint Research posted a blog that highlighted the value of the smartphone market, which grew to be $448 billion in 2021, up 7% year on year in Q4. Apple’s market revenues were $196 billion (43.7%). As GfK reported recently, ASPs rose 12% to reach $322 based on increased penetration of 5G sets. 5G took more than 40% of shipments, up from 18% in 2020.
Highlights by brand were:
- Apple’s iPhone revenues were up by 35% and high demand for 5G-enabled iPhone 12 and 13 series helped Apple register 14% growth in its overall ASP, which reached $825 in 2021. The brand also managed to increase its share in key emerging markets such as India, Thailand, Vietnam and Brazil.
- Samsung was up by 11% to $72 billion with ASPs up 5% to $263. Foldable sales tripled.
- Xiaomi’s revenue increased 49% YoY to reach $36 billion in 2021 and in India, the firm’s biggest market, smartphones costing more than $250 grew 39% YoY to account for more than 14% of Xiaomi’s India market, compared to 8% in 2020.
- Oppo saw a revenue increase of 47% YoY to $37 billion. Its ASP grew 15% YoY to reach $259 in 2021. 5G-enabled smartphones contributed more than 50% of the brand’s yearly shipments in 2021 against 28% in 2020. OPPO* also managed to expand its presence in mature markets such as China, Japan and parts of Europe (including Nordic countries).
- vivo’s revenue increased 43% YoY to $34 billion. Its ASP grew 19% YoY to reach $259 in 2021. The brand ranked as the fifth-largest smartphone vendor in 2021 both in terms of revenue and shipments. It’s growth was helped by a presence in all price bands.
What We Think
I’m not sure that I thought a couple of years ago that the market would be able to sustain rising value. To a large extent, most smartphones of the last three or four years are ‘good enough’ and in that situation, I would expect continuing price erosion. Maybe the smartphone is so central to everyday life that buyers are comfortable to keep their spending high? (BR)
