14 DAY TRIAL // It goes without saying the global health issue has significantly hit the phone market, and companies like Samsung and Huawei have recorded a substantial drop in some specific regions, such as the Western Europe.
But according to research firm IDC, the smartphone market is expected to recover in the fourth quarter of the year, partially thanks to the strong demand for 5G models that went live throughout this year.
Indeed, the 5G smartphone market has grown a lot lately thanks to the release of more devices. Apple is one of the companies contributing to this trend, as the entire iPhone 12 lineup comes with support for 5G.
The smartphone market is expected to grow 2.4 percent year over year in the next quarter, while another growth, this time of 4.4 percent, is projected to happen in the first quarter of 2021, mostly fueled by the growing demand in late 2020.
5G adoption to continue in the coming years
"Despite concerns around weakness in 5G demand, smartphone volumes exceeded the forecast in 3Q20 and supply-side momentum headed into the holiday quarter and 2021 remains strong," said Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers.
"We've come to the conclusion that despite on-going lockdowns and economic concerns, consumers in many markets around the world have shifted their normal spending from things like travel, dining out, and general leisure to things like consumer electronics. Smartphones happen to be a benefactor of this transition."
As said, 5G smartphones will play an important role in this recovery, and IDC estimates that phone with such capabilities would account for 10 percent of all smartphone sales this year alone. The growing trend would be maintained in the coming years before eventually reaching 29 percent in 2024.