Supply Chain Woes, COVID-19 Crimping Smartphone Growth: Canalys

Apple generated 22% of Q4 global smartphone shipments on strong iPhone 13 demand; Samsung followed at 20%, said a preliminary Canalys report Tuesday. Supply chain problems and COVID-19 limited overall shipment growth to 1%. Apple had “unprecedented” iPhone sales in mainland China on “aggressive pricing,” said the research firm. Though Apple’s supply chain is “starting to recover,” it was forced to cut production in Q4 due to shortages of key components, but supply chain disruptions affected low-end vendors the most, said analyst Nicole Peng. “Component manufacturers are eking out additional production, but it will take years for major foundries to significantly increase chip capacity.” Smartphone brands are responding by tweaking device specifications in response to available materials, approaching emerging chipmakers to secure new sources for ICs, focusing product lines on best-selling models and staggering new product releases, she said: Bottlenecks won't ease until the second half.