Smartphone Market on the Rise: Here’s what MSMEs can Expect by 2022

Anju Nambiar — Wed, 09 Jun 2021 08:32:18 +0000

The International Data Corporation (IDC) recently shared its immediate growth perspective for the smartphone market in its ‘Worldwide Quarterly Mobile Phone Tracker Report’. IDC is a premier global provider of market intelligence for the telecommunications, and consumer technology markets. The ‘Worldwide Quarterly Mobile Phone Tracker Report’ is a product of IDC which offers technology and forecast coverage on price bands, and geographic scope of feature phones and smartphones.

Key highlights from the report: What MSMEs can expect by 2022.

Increase in smartphone shipments

Smartphone shipments will touch an all-time high of 1.38 B units by 2021. By the end of 2022, this number will grow by 3.8 per cent and touch a new high of 1.43 B. Even amidst the tough competition from parallel consumer tech markets, the smartphone market is recovering at an accelerated pace.

Demand for 5G devices

By the end of 2021, 5G shipments will see a growth of up to 130 per cent and see triple digit growth in all regions apart from China. 2021 will be the biggest year for the smartphone market in terms of growth.

Low price points on smartphone devices

The Average Selling Price (ASP) of smartphones will peak with a 9.7% growth due to the arrival of 5G in 2021. After the peak, the prices of 5G Android devices will plummet. MSMEs can expect high demand for mid-range and low-end 4G phones within emerging markets. A low, single-digit growth will be seen up till 2025 along with a five-year Compound Annual Growth Rate (CAGR) of 3.7%.

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The smartphone market will be increasingly moving towards locations where 5G networks are deployed.

What’s in it for me?

The smartphone market will be increasingly moving towards locations where 5G networks are deployed. These locales should be your target markets to capitalise on the demand. Due to the strong push towards 5G in the supply side, price points for smartphones will continue to plummet. This will threaten the big fish like Apple and other high end-brands.

Low price points for Android devices will help you to tap into the demand. 5G will be the prime focus across all price points for smartphones. 5G devices will replace LTE devices and consumer tech MSMEs should look into offering 5G Android phones.

Online channels for smartphone models have grown faster than the overall market did. Non-premium products are dominating the online market in terms of shipments and your product must list online to see higher sales and shipments.

However, the offline market for 5G enabled Android smartphone devices is growing as well where non-premium brands (from MSMEs) will have a higher leverage over the premium segment like Apple, Samsung and OnePlus.

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Semiconductors are back, especially in AI and 5G

Smruthi Krishnan — Thu, 11 Feb 2021 00:35:02 +0000

Semiconductor applications especially in AI and 5G witnessed unprecedented growth due to a push from increasing data traffic and hardware improvements. According to Frost & Sullivan’s recent forecast to 2025 of Growth Opportunities for Memory, Power, and Artificial Intelligence (AI) Semiconductors in 5G; 5G AI, memory, and power amplifier (PA) semiconductor market is speedily metamorphosing from the nascent to growth stage. This reason behind this rapid transformation is exponential increase in data traffic, technological advancements and capability improvements, and development of new applications. Experiencing a growth at compound annual growth rate (CAGR) of 74.3%, the market for semiconductors is visioned to obtain revenue of $15.03 billion by 2025 compared to $536.9 million in 2019.

With a wide spectrum of applications, the main prospects of AI and 5G semiconductors lie in the following sectors:

Manufacturing Sector: To control rising production costs, network equipment and robotics system manufacturers can use PA, and AI chips and capitalize.

Healthcare Sector: The pandemic has increased the adoption of robotics in the healthcare sector. AI and PA market participants can optimize the existing products.

Automotive Sector: 1vehicles need ultra-fast, reliable networks that process huge volumes of data which need 5G AI and PA devices.

Agriculture Sector: Cost-effective, application-specific circuits are needed to enhance farm productivity. 5G and AI can help bring about this transformation.

It is predicted that Memory integrated circuits (ICs) supporting 5G end-user markets will contribute the most. AI is still in the seed stage and is forecasted to develop significantly in the next five years. A surge in semiconductor test volumes and increasing demand from the communication, consumer electronics, automotive and healthcare sectors will possibly help in the revival of the semiconductor industry. The future generation requires technological advancements and innovations to absorb artificial intelligence (AI) and 5G networks.

Investments in 5G network infrastructure and innovations in the semiconductor industry can induce growth in the market. Expansion and innovation in AI, automotive and 5G communication is currently boosting the manufacture of high-end IC chips and other semiconductor equipment. Start-ups are also trying to leverage the power of AI to improve the IT help desk experience and better sales forecasting, increasing the demand for chips.

Data shows nearly 320 million 5G subscribers are forecasted in the U.S. by the end of 2025. Semiconductors will help improve cellular networks enabling consumers to access the internet at extraordinary 5G speeds leading to a more connected world. It will also enhance video on-the-go quality and develop technologies like virtual reality.

The global semiconductor market was in a slump in 2020 due to the fallout owing to the US-China trade dispute. Though the demand side looks uncertain, the market is expected to make a gradual recovery with increase in demand related to 5G, AI, and automotive applications.

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