Global smartphone sales to end-users declined 6.8 percent in the third quarter of 2021, compared to the same time period in 2020, according to Gartner, Inc. Component shortages disrupted production schedules, leading to lower inventory and delayed product availability, which eventually impacted sales to end-users.

“Despite strong consumer demand, smartphone sales declined due to delayed product launches, longer delivery schedule and insufficient inventory at the channel,” said Anshul Gupta, senior research director at Gartner. “Supply constraints impacted the production schedule of basic and utility smartphones much more than premium smartphones.”

The current shortage of components, such as radio frequency and power management integrated circuits, delayed smartphone production globally. This disrupted the supply-demand equilibrium and end-users were burdened with limited choices at point of sale. Sales of premium smartphones continued to grow even though overall smartphones sales declined in the quarter.

Apple reclaimed the No.2 position in sales to end-users and Xiaomi moved back to No.3 in the third quarter of 2021 (see Table 1). Samsung maintained its overall lead in smartphone sales, though its market share declined 1.9 percent year-over-year. Even with the overall decline, Samsung experienced growth of its premium smartphones, led by strong demand for revamped foldable smartphones. Chinese smartphone vendors Xiaomi, Vivo and OPPO increased their market share 1 percent, 2.4 percent and 1.7 percent respectively, year-over-year.