The latest IDC prediction on the smartphone is painting an optimistic picture. Based on the gathered data, IDC is forecasting 1.38 billion smartphone shipments for 2021 which would be a 7.7% increase compared to last year and the highest total since 2015. The upward trend is also expected to continue into 2022 but with a more modest 3.8% annual growth.
IDC believes the wide-scale deployment of 5G networks paired with the lowered cost of 5G phones will lead to a triple-digit percentage increase in 5G phone shipments by the end of this year. China is expected to be the driving force behind the increased shipments with nearly half of all 5G smartphone sales. The US is expected to be a distant second with 16% market share.
The average selling price (ASP) of 5G Android phones is predicted to drop to $456 which is a 12% decrease compared to the ASP in 2020. The number is expected to drop to $400 by 2022.