Samsung and iPhone production slowed significantly in Q2 2021

Samsung and iPhone production slowed significantly in Q2 2021
Global smartphone production has been severely impacted by the ongoing global chip shortage and surge of COVID-19 cases in certain Asian regions, as the latest investigations from TrendForce detail.

Samsung's smartphone production dipped a lot in Q2

In the second quarter of 2021, smartphone production reportedly totaled 307 million units. That’s down 11% compared to the first quarter of the year, but up a solid 10% compared to the second quarter of 2020.

Samsung was the largest smartphone manufacturer by production volume between April and June, with its factories churning out 58.5 million units. Those numbers represent a hefty 23.5% drop from the first quarter.

The South Korean brand has been hit hard in recent months by COVID-19 outbreaks in India and Vietnam, which have forced it to scale back or even temporarily pause production at its local factories.

Samsung should retain its number one spot for 2021, but TrendForce notes that competition is only increasing, so in the coming quarters it’ll be harder to preserve what’s already a shrinking market share.

Oppo and Xiaomi both benefited from Huawei's exit 

Oppo and Xiaomi each produced 49.5 million smartphone units in the second quarter, according to TrendForce’s investigations. Xiaomi’s production figures include sub-brands Redmi, Poco, and Black Share; Oppo’s include Realme and OnePlus.

Compared to twelve months earlier, Oppo’s production skyrocketed an incredible 80% and Xiaomi’s was up an impressive 70%. Nevertheless, compared to the first quarter, each brand’s volume was down a little.

Today’s report attributes both Xiaomi and Oppo’s success to them absorbing most of Huawei’s lost market share, plus the recovering smartphone market in China. These two brands pose the biggest threat to Samsung in the coming quarters.

Apple entered a 'transition period' between the iPhone 12 and iPhone 13

As for Apple, iPhone production continued to decline in the June quarter as it entered a model transition period ahead of preparations for the iPhone 13, due to be released in the second half of September.

Suppliers reportedly manufacturer 42 million iPhone units, down 22% quarter-on-quarter. The move made Apple the fourth largest brand by production volume, but it’s expected to return to second place in the current quarter.

Nevertheless, TrendForce warns that iPhone 13 production could be impacted in the second half of the year due to recent COVID-19 spikes in markets like Malaysia, where certain components are produced.

Vivo was the 5th largest brand by production volume

Rounding out the top 5 was Vivo, with a production of 34 million units (including sub-brand iQoo) during the quarter. Like Samsung, it faced issues in India because of the COVID-19 outbreak.

Its share of global smartphone production is expected to decline a little in the third quarter due to increased competition from Apple and Samsung. Like Xiaomi and Oppo, though, Vivo is well-positioned to absorb any remaining Huawei market share.

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