The momentum of global smartphone shipments slowed during the third quarter of 2021, as supply chain and component shortage issues started weighing on the sector, the latest International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker shows.

Global smartphone shipments, which had been experiencing double-digit growth during the first two quarters of 2021, declined a higher-than-expected 6.7% year-on-year to 331.2-million units by the third quarter of the year.

While a slight decline was expected in the seasonally low third quarter, the actual decline was more than twice the forecast of a 2.9% contraction, the IDC’s preliminary data found.

“The supply chain and component shortage issues have finally caught up to the smartphone market, which until now seemed almost immune to this issue, despite its adverse impact on many other adjacent industries,” says IDC mobility and consumer device tracker research director Nabila Popal, noting that, while the industry was never fully immune to the shortages until recently, the shortages were not severe enough to cause a decline in shipments and was simply limiting the rate of growth.

However, the 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 the manufacturing of key components,” she adds.

Despite all efforts to mitigate the impact, all major vendors’ production targets for the fourth quarter have been adjusted downwards.

“With continued strong demand, we do not anticipate the supply-side issues to ease until well into next year.”

Central and Eastern Europe and Asia Pacific, excluding Japan and China, experienced the largest declines, falling 23.2% and 11.6% respectively during the quarter under review.

The US, Western Europe and China reported less pronounced contractions of 0.2%, 4.6% and 4.4% year-on-year respectively as these regions are usually given more priority by vendors, says Popal.

During the third quarter of 2021, Samsung secured the top position with 69-million units shipped and a 20.8% market share, compared with shipments of 80.4-million and a market share of 22.7% in the third quarter of 2020.

This was a year-on-year decline of 14.2%, largely owing to supply constraints.

Apple, meanwhile, regained the second position with 50.4-million units shipped and a 15.2% market share after a significant 20.8% year-over-year growth. This is compared with the shipment of 41.7-million units and a market share of 11.7% in the comparative period last year.