The chip shortage may lead to a decline in smartphone Q2 shipments from Xiaomi, Vivo and others

Smartphone shipments from top-tier brands such as Xiaomi, Oppo and Vivo will decline in the second quarter of this year due to a shortage of semiconductor components, according to a latest report from DigiTimes Research.

The easing of the epidemic and a low base in the same period last year contributed to a 47 per cent year-on-year increase in global smartphone shipments in the first quarter, Digitimes Research said.

Samsung, Apple and Xiaomi are reported to be the top three suppliers in the first quarter. Samsung's shipments in the first quarter rose 15.9 percent year on year to 75 million units, surpassing Apple and taking the top spot again. Apple ranked second, shipping a total of 56 million units, up 49.5 percent from the same period last year.

In addition, the shipments of Chinese manufacturers OPPO and VIVO also increased significantly. Phone makers, including Xiaomi, Oppo and Vivo, have been taking aggressive steps to grab Huawei's lost market share, such as launching more entry-level 5G smartphones.

However, Digitimes Research warned that Xiaomi and Oppo recently revised their shipment targets for this year due to a shortage of components.

Due to surging demand for IT products, networking equipment and smartphones as well as the global economic recovery, manufacturers in related industries are scrambling to buy needed semiconductor components and back-end service capabilities, leading to longer delivery times and even shortages.

As a result, shipments of top-tier brands such as Xiaomi, Oppo and Vivo will decline in the second quarter before picking up again in the second half of the year, Digitimes Research said, as most handset vendors launch new models.