According to recently published research by Strategy Analytics, global smartphone wholesale revenue is projected to grow 13% during 2021. This would represent the highest growth rate experienced by the sector in the last six years, spelling a bright future for the pandemic-stricken industry.
The smartphone sector has a rough year behind it. Covid-19 wrecked the economy and disrupted global supply and production lines, causing a 5% wholesale revenue decrease for smartphones. Thankfully, Strategy Analytics researchers believe the sector will recover rapidly. Economic recovery, the migration to 5G, higher component prices, the iPhone 12 supercycle, and the replacement of older devices are the main drivers of rapid growth in 2021.
The revenue is expected to keep increasing until 2026, albeit at a progressively lower growth rate. Strategy Analytics expects 2026 to be the year in which global smartphone wholesale revenue will hit a record high.
The research also predicts global smartphone sale volume growth of 7% YoY at 1.4 billion units, while the average wholesale selling price will jump by 6%, reaching $294 in 2021. As a result, world smartphone wholesale revenue is expected to exceed $400 billion. The iPhone 12 supercycle will contribute significantly to the growth of the ultra-premium smartphone segment, which encompasses models with a wholesale price of $600 or above.
Strategy Analytics also projects that four countries – China, the US, India, and Japan – will account for 54% of all smartphone wholesale revenue in 2021. While optimistic, these predictions also depend on how effectively countries around the world handle the pandemic. Out of the aforementioned countries, India is currently struggling the most, which may affect its smartphone market. Other large markets, such as Brazil, are also fighting new Covid infection surges.
Even with these variables in mind, Strategy Analytics retains an optimistic outlook on the future of the smartphone sector.