Consumer Electronics: Quarterly Statement Q4 2021

December 2021

Sales of consumer electronics are projected to make a full recovery in 2022 as they exceed the pre-pandemic level. As the world moves into the new normal, restored consumer confidence in income stability, rising vaccination levels across markets, and technological innovation will continue to drive the industry forward.

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Key Findings

Sales of consumer electronics expected to see a full recovery in 2022

The economy has been growing resilience with climbing vaccination rates and patterned protective measures, leading to more optimistic consumer income and spending for consumer electronics in 2022.

Supply constraints cast shadow on shipment and cause price to increase

Despite supply constraints caused by shortage of semiconductor and key components continuing to impede production and delivery of high-tech goods, retail volume sales of consumer electronics in 2021 still posted positive growth compared to 2020. Shortage of supply also led to a retail price rise for selected categories due to manufacturers’ reallocation of resources to premium models.

Technological innovation still the core driving force for growth

Technological innovation is an affirmative industry response to extend the maturity stage and shift to a new growth curve before it enters decline. Manufacturers should continue to cultivate capabilities to innovate and deliver innovation.

Companies explore smartphone peripherals and new business models to generate streams of revenue

Companies have been exploring growing smartphone peripherals, which include headphones, wireless speakers, and wearables, to sell more hardware. More cost-competitive and innovative services as a new business model are also a key strategy to drive growth.

Multibrand and “flagship killer” strategy key to globalisation of Chinese smartphone brands

Chinese smartphone brands have successfully penetrated in emerging markets outside of China, employing a multibrand and “flagship killer” strategy. With Huawei’s global retreat, their attempts could also be observed to tap into the premium segment.

Introduction

Scope
Key findings

Q4 2021 Consumer Electronics Update

Consumer electronics expected to see a full recovery in 2022
More markets show higher sales from Q4’s upgrade
Headphones: Demand boosted by the pandemic and sustained
Laptops: Work-from-home benefits long-term outlook
Preventative health accelerates higher of adoption of wearables
Impact of supply constraints on shipment is likely to linger
Component shortages cause prices to increase
Technological innovation still the core driving force for growth
Smartphone peripherals generating new revenue stream
Subscription-based services frontier of new business models
Apple: strong iPhone sales in China
Globalisation of Chinese smartphone brands
…could be attributed to multibrand and “flagship killer” strategy
Divorcing Huawei, Honor is reborn

Q4 2021 Macroeconomic Update

Delta variant and supply constraints temper economic recovery
Forecast risks remain tilted to the downside
Real GDP annual growth forecasts and revisions from last quarter, AE
Real GDP annual growth forecasts and revisions from last quarter, EMDE

About our Industry Forecast Model

About Consumer Electronics forecast updates
Euromonitor International and COVID-19: Forecasts and analysis
Consumer Electronics: COVID-19 data and reporting timeline

Consumer Electronics

Consumer Electronics refers to the sales of Computers and Peripherals, In-Home Consumer Electronics, In-Car Entertainment and Portable Consumer Electronics to the end consumer.

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