In short: LG’s determination to cease making telephones has left a void within the US market, and it’s fortunately being stuffed by OnePlus, Motorola, and Nokia HMD. Whereas element shortages proceed to have an effect on an enormous vary of shopper items, together with smartphones, the general market grew 27% within the first half of 2021 in comparison with the identical interval final 12 months.
Counterpoint Research’s newest report exhibits that LG’s shipments within the US cellphone market fell -35% YoY in H1 2021. Rumors that the South Korean agency would exit the enterprise following 23 quarters of consecutive losses arrived in January, and LG confirmed its departure in April, with its last-ever cellphone rolling off the manufacturing line a number of weeks later.
Along with LG’s farewell, there was an elevated demand for extra inexpensive 5G telephones and the well-documented element shortages, making it a difficult 12 months for OEMs. However OnePlus, Motorola, and Nokia HMD have stepped into the hole left by LG.
OnePlus noticed the most important positive factors; it recorded 428% development in H1, partly due to the introduction of the N100 and N10 5G in January, whereas Motorola was up 83% and Nokia HMD jumped 35%. Apple, in the meantime, was up 53%, whereas Samsung elevated 17%, although Counterpoint believes Samsung’s figures would have been higher if it had been in a position to meet demand.
LG wasn’t the worst performer in H1; that doubtful honor goes to ZTE, which fell -77%. Google, which hasn’t launched a brand new cellphone for the reason that Pixel 4a in October, was down -7%.
Whereas the 27% general market development is nice information for the business, Counterpoint Analysis’s senior analyst Hanish Bhatia supplied this warning: “Part shortages are leading to OEMs falling quick in assembly service calls for for particular smartphone fashions, whereas additionally forcing some to prioritize sure fashions over others. If this continues, it could put an enormous constraint on the availability facet in H2 2021.”