The deadly coronavirus has overshadowed the lives of all people for almost two years. Unfortunately, every once in a while we see a new wave of the virus in different parts of the world, and each time different businesses are disrupted for an indefinite period of time. The smartphone industry is one of those businesses that is not doing very well right now.
The corona virus, because it is so contagious, has made many users homeless. Also, assembly companies are working at their minimum capacity so that its employees do not get into trouble. As a result, production volumes have plummeted and companies are unable to meet market demand as they did in pre-Corona times.
But that is not the whole story; Because the corona on the one hand and the lack of chips on the other hand, has a negative impact on reducing production speed. One of the reasons for the chip shortage may be related to the spread of Corona virus, but the main reason is problems such as drought and water shortage in Taiwan, which has caused problems for a company such as TSMC, which is the largest company in the field of CPU manufacturing. On the other hand, other companies such as Samsung, which is the largest company in this field after TSMC, are also struggling with this problem for another reason, and it is still unclear when the situation will return to normal.
Significant slowdown in Samsung production in the second quarter of 2021
As a result of these problems, Samsung has dramatically slowed down production. In the second quarter of this year, a total of 307 million smartphones were produced, which is a decrease of 11% compared to the first quarter of this year, but compared to the same period last year, we see a growth of 10%.
Samsung must make great efforts to maintain its position as the top manufacturer and seller of smartphones in the world But according to the TrendForce website, the competition is growing day by day, and companies like Xiaomi are moving in the shadow of the Korean company. Therefore, it is very difficult for Samsung to rectify the current situation and take steps to maintain its position. Unless the company pays special attention to its budget and mid-range handsets and equips them with good capabilities.
Xiaomi and Oppo benefit from Huawei embargo
Oppo and Xiaomi are two big and prominent Chinese companies whose names were under the shadow of Huawei a few years ago. But after the Trump administration boycotted Huawei in terms of software and hardware, the company fell one place from the top of the top smartphone maker to the seventh, so it can no longer be considered a serious competitor.
With Huawei out of the competition, big Chinese companies like Xiaomi and Oppo were able to gain more market share. According to TrendForce, the two companies produced 49.5 smartphones in the second quarter of this year, including Xiaomi subsidiaries such as Redmi, Poco and BlackShark, and Oppo subsidiaries such as Riley and OnePlus.
Apple is not as good as Samsung
It seems that Apple is not doing very well in the market either, because in June, the production of iPhones decreased significantly. Of course, this may be natural, because the American company is preparing the conditions for the arrival of the iPhone 13 series phones. According to rumors, these phones will be unveiled and launched in the market this month, so it is quite natural that Apple's production will decrease.
According to various news and reports, in the last quarter, Apple managed to have 42 million phones Smart, which was down 22 percent from the previous quarter. This relatively poor performance earned Cupertino the fourth largest brand in terms of production, but it looks like it could return to second place this quarter.
However, TrendForce predicts that Apple will introduce phones after the introduction of The iPhone 13 series is not in a very good position either, as the Corona virus has re-emerged in Malaysia, which produces parts of the iPhone parts, and has closed many parts. That's why Apple may not be able to make the iPhone 13 fit the needs of the market. It produces well, but it is not big enough to sell its products in different markets. So we did not expect it to have a good position among the top smartphone manufacturers such as Apple, Samsung and Xiaomi, but we see that this Chinese company appeared beyond expectations and was able to reach the fifth place.
Vivo In the last quarter, it was able to produce 34 million handsets, which includes the handsets produced by its subsidiary brand, iQoo. Like Samsung, Vivo lost much of its chance to make more products due to the outbreak of the Corona virus in India, but it still went beyond expectations. Vivo, however, after the start of the quarter Third, it is very likely that due to increased competition between Samsung and Apple, we will see a decrease in market share, but we do not know how noticeable this decrease is and we have to wait. The company, like Oppo and Xiaomi, was able to make good use of its absence in the market after the fall of Huawei and reach this position. It remains to be seen whether Vivo will be able to maintain its ranking by producing good and affordable handsets.