The global chip shortage is having a serious impact on the smart phone industry. Not only has shipments continued to slow down, but prices have soared for the first time in many years. Some manufacturers have had to reduce production or delay the launch of new phones. Counterpoint Research estimates that the mobile phone industry’s shipments in the second quarter may be reduced by 10% compared to the first quarter

According to the “Wall Street Journal” report, compared with the industries that are suffering from chip shortages such as automobiles, PCs, and home appliances, smartphone manufacturers have not been severely affected for most of this year because they purchase important parts six months in advance, but inventories are gradually shrinking. Industry analysts said that more than 80% of mobile phone manufacturers are in the dilemma of a shortage of parts.

For Samsung Electronics, the world's largest mobile phone manufacturer, the procurement of key components may result in a 20% decrease in shipments in the second quarter compared with the first quarter. Google said that Pixel 5 will only be available in the United States and Japan, a change from the past practice of selling in multiple countries. Xiaomi's 11 Ultra, which was originally scheduled to be launched in April this year, was delayed until early July. However, analysts also said that most of the high-end phones of Apple and Samsung have not been affected.

Counterpoint Research estimates that smartphone shipments in the second half of the year will be about 771 million, an increase of 1.3% from 761 million in the same period last year. Tarun Pathak, the research director of the agency, said that the shortage of parts is the biggest obstacle to shipment growth.

At the same time, the shortage of chips has also pushed up component prices. At present, manufacturers have passed on costs by increasing mobile phone prices. Xiaomi released its latest flagship machine, Redmi Note 10, in India in March this year, priced at about US$161, but this month's price is US$174, which is 8% higher than the previous price.

According to data from Strategy Analytics, a market research firm, global mobile phone wholesale prices will rise by 5% in the fourth quarter of this year, surpassing the phenomenon that prices have increased by no more than 2% in recent years.