Supply chain constraints end dream run of global smartphone industry

New Delhi: The supply chain and component shortage issues have ended the dream run of the global smartphone market which had seen double-digit growth in the early quarters of 2021, a new IDC report showed on Friday.
Worldwide shipments declined 6.7 per cent (year-over-year) in the third quarter (Q3) this year and smartphone vendors shipped a total of 331.2 million units during the quarter.
The supply chain issues have now compounded, and shortages are affecting all vendors alike.
“On top of component shortages, the industry has also been hit with other manufacturing and logistical challenges. Stricter testing and quarantining policies are delaying transportation and power supply constraints in China are restricting manufacturing of key components,” said Nabila Popal, research director with IDC’s Mobility and Consumer Device Trackers.
Despite all efforts to mitigate the impact, all major vendors’ production targets for the fourth quarter have been adjusted downwards.
Also Read Chip shortage set to further affect growth: Tim Cook “With continued strong demand, we don’t anticipate the supply-side issues to ease until well into next year,” Popal said in a statement.