Overview:

• Demand continues to outstrip supply, Sell in improves in August
  • Global smartphone market sales declined slightly month-on-month in September, mainly because of China’s continued slow down and the effect of component shortages. India market also remained slow as consumers hold withheld purchasing ahead of the festive season. By contrast US, Japan and Western Europe all grew driven by the launch of the iPhone 13 series. Apple continued to navigate through the shortages much better than other OEMs.  
  • Sell-in also surged in September mainly driven by the launch of the Apple’s new iPhone series, the channel fills in India before the festive season and the recovery of the SEA market following relaxations in COVID restrictions. However, overall, the demand continues to be higher than supply. OEMs like Xiaomi faced severe shortages, which affected its sales. The shortages will continue in the coming months. Several OEMs are increasing device prices in response to more expensive components and other increased costs, for example transportation.
• Apple becomes the second largest brand in September, Xiaomi declines due to shortages
  • Apple sales grew 36% MoM, as it surpassed Xiaomi to become the second largest brand Globally in September as well as in Q3 2021. This was driven by the successful launch of the iPhone 13 series. Apple remained most immune to shortages as compared to other OEMs.
  • Apple’s sales grew across almost all the regions and demand outstripped supply in the regions like the US, where lead time for Pro version remain in range of 4 to 6 weeks.
  • Xiaomi’s sales declined sharply in September, and market share reduced to 10% due to the impact of component shortages. Demand was higher than supply for Xiaomi in regions like SEA. In terms of shipments, Xiaomi prioritized India market in September to fill channels ahead of the festive season in the first week of October.
• Ultra-premium segment share increases significantly; Prices of devices continue to rise amidst shortages
  • The ultra-premium segment increased sharply driven by the launch of the iPhone 13 series. The iPhone 13 was the best-selling model globally in the segment followed by the iPhone 13 Pro Max and the iPhone 13. Within the US, the demand for the iPhone 13 Pro Max and Pro was higher than the usual iPhone 13 during the first few days of the launch. Samsung’s share declined in the premium segment, as it faced stiff competition from Apple.
  • OEMs like Xiaomi, OPPO, realme have increased prices of some devices due to rising component prices. Brands are finding ways to manage the situation by relaunching models with different chipsets and tweaking accessories, and other specifications to manage the price impacts.  

Key Takeaways: