The smartphone market reached $450 billion in 2021

smartphone market data

A record figure for a market dominated by Apple and the successful launch of the iPhone 13.

Counterpoint Research, a firm specializing in the study of technology markets, has published a report outlining the state of the smartphone market in 2021. Despite the pandemic and the shortage of electronic components, the sector has achieved the best performance in its history.

Average smartphone price increased in 2021

In fact, the global smartphone market revenue crossed the record mark of $448 billion in 2021, according to the latest study by Counterpoint’s Market Monitor service. This is a 7% increase from the previous year. The average selling price of smartphones has also increased by 12% compared to 2020 to reach $322.

One reason for this trend is the increasing number of smartphones supporting 5G being deployed on the market. Logically, their price is higher than that of devices supporting only 4G. 5G-enabled smartphones accounted for more than 40% of global shipments in 2021, up from 18% in 2020.

As Counterpoint Research explains, demand for high-end smartphones has also been growing over the past year. This is a direct result of the Covid-19 pandemic, as users have been looking for a better experience for education, entertainment or even work from home. The shortage of semiconductors is also impacting the price of smartphones as some manufacturers have increased the price of their devices in order to cope with it.

Apple dominates the smartphone market

Unsurprisingly, Apple dominated the market in 2021 with the very successful launch of its iPhone 13 range. The Apple brand saw its iPhone-related revenue increase by 35% in one year to $196 billion. In 2021, the iPhone accounted for 44% of total global smartphone revenue.

The Cupertino-based firm is followed by Samsung, whose revenue grew 11% from 2020 to 2021. In addition to launching two folding smartphones, Samsung has managed to increase its global market share in the mid- and high-end segments with the launch of the flagship Galaxy S series.

It is Xiaomi that occupies the third place with a considerable increase in revenue of 49%. This is due in part to the popularity of Xiaomi devices in India, the firm’s largest market, as well as increased shipments and market share of its mid-range and high-end smartphones, such as the Mi 11x series.

The two manufacturers behind Xiaomi are also Chinese. They are OPPO and vivo, which have seen their revenues increase by 47% and 43% respectively. It should be noted that Huawei, once the best seller of smartphones in the world, is not among the top five manufacturers, as a result of the U.S. sanctions against it, which have greatly affected it.