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Home | Tech | 5g Sales Help Us Smartphone Market To Grow 19 In Q1

5G sales help US smartphone market to grow 19% in Q1

By IANS
Published: Updated On - 03:08 PM, Sun - 2 May 21
Representational Image Apple also had another record-breaking quarter, with North America revenues growing 35 per cent YoY. All these factors point towards renewed strength in the smartphone market demand and 5G adoption,

San Francisco: 5G smartphone sales from Apple, Samsung and OnePlus helped the US smartphone market witness a 19 per cent year-over-year growth in the first quarter this year, a report has showed.

The market sold over 53 million 5G devices at the end of Q1 2021 since the launch of 5G in 2019.

In Q1 2021, 5G sales made up 57 per cent of all smartphone sales as more 5G capable devices have come down price tiers, according to Counterpoint Research.

“Apple also had another record-breaking quarter, with North America revenues growing 35 per cent YoY. All these factors point towards renewed strength in the smartphone market demand and 5G adoption,” said Senior Research Analyst Hanish Bhatia.

“However, we are also watching for component shortages and how this might affect the market going forward,” he said in a statement.

Bigger OEMs such as Apple and Samsung seem to be less affected, but smaller Tier 2 and Tier 3 OEMs may feel the impact to a greater extent going forward.

“Apple has given guidance that component shortages will affect its Mac and iPad lineups as supply will not be able to meet demand,” Bhatia noted.

Quarter-over-quarter (QoQ), the US market experienced the usual contraction coming off of a strong holiday period and iPhone 12 launch.

More lower-priced LTE smartphones were sold in Q1 as the market shifted towards prepaid sales, temporarily halting 5G sales momentum.

“The beginning of 2021 saw continued sales for the iPhone 12 as demand spilled over from its late launch in Q4 2020. This has since tapered off. Samsung also refreshed its S series lineup with the S21 in February,” said Senior Research Analyst Maurice Klaehne.

Overall 5G ASPs (average selling prices) climbed above $800 in Q1 2021 again due to the prolonged demand for premium devices in early 2021.

“However, Samsung introduced the mid-tier A32 5G and A42 5G in April which we expect will help further drive down overall 5G ASPs. We believe 5G prices will drop below $250 in H2 2021,” said Jeff Fieldhack, US Mobile Devices and Carrier Strategies Director.

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