Many markets prefer low-end and mid-range 4G smartphones

Thursday, 03 June 2021 at 14:28

After two consecutive quarters of positive growth, IDC has raised its near-term forecast for the global smartphone market. IDC's global quarterly mobile phone tracking shows that in 2021, smartphone shipments are expected to reach 1.38 billion units. This will be an increase of 7.7% over 2020. According to the organization, this trend will continue until 2022 where it will have a year-on-year growth of 3.8%. In addition, the total shipments will be 1.43 billion units.

Many markets around the world that have deployed 5G networks are continuing to migrate to 5G equipment. However, emerging markets are still struggling with 5G after the global pandemic. These emerging markets seems to have more interest for low-end and mid-range 4G mobile phones. Looking ahead, IDC predicts that low single-digit growth will continue until 2025, with a five-year compound annual growth rate (CAGR) of 3.7%.

In addition, IDC also pointed out that the supply side continues to vigorously promote 5G, and the average unit price continues to decline as a result. It also predicts that the average selling price of 5G Android devices in 2021 will drop by 12% year-on-year to $456. By 2022, the average selling price of Android devices will fall below $400. Apple will continue to feel price pressure.

The fact that many emerging markets still prefer 4G smartphones will be a very good news for Huawei. The company can not launch 5G smartphones anymore because of lack of chips. This is why it had to launch a plethora of smartphones / tablets that only support 4G. Although, it still has the GMS issue, if the market still appearcieates 4G devices, Huawei will have a chance. The company may not sell so much, but global users will have the opportunity of feeling the HarmonyOS. As of now, Huawei can buy 4G chips from American companies.

Below are Huawei's recently released 4G smartphones / tablets and their prices. They were all released yesterday

Huawei MatePad Pro 12.6 inch tablet

8GB+128GB Wi-Fi (Lime/Frost Silver): 4999 yuan ($783)
8GB + 256GB Wi-Fi (Lime/Frost Silver): 5499 yuan ($862)
8GB+256GB Wi-Fi (Populus euphratica): 6699 yuan ($1050) (including pen + keyboard)
8GB + 256GB 5G (Populus euphratica): 7999 yuan ($1254) (including pen + keyboard)