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Global smartphone market declines at fastest ever rate in Q2

PUNJAB NEWSLINE BUREAU
July 31, 2020 12:06 PM

NEW DEHLI: The global smartphone market slumped 24 per ent year-over-year in the second quarter of this year to 271.4 million units, registering the fastest ever rate of decline, a Counterpoint Research report said on Friday.

Riding on growth in China, Huawei, even after struggling with US sanctions, surpassed Samsung to become the top player in the global smartphone market for the first time in Q2.

Samsung declined 29 per cent year-over-year as its core markets including Latin America, India, Europe and the US were struggling from the effects of the pandemic and lockdowns.

"Huawei was able to attain this feat due to a unique market scenario created because of Covid-19. China, Huawei's largest market, is now recovering from the pandemic compared to other markets like Europe, LATAM (Latin America), and North America," Tarun Pathak, Associate Director at Counterpoint Research, said in a statement.

"Smartphone shipments in China declined 17 per cent YoY, a more modest decline than the rest of the world that declined 28 per cent YoY," Pathak said.

During the quarter, Realme was the only major brand to achieve double digit growth – 11 per cent year-over-year -- as several markets in Europe and India recovered in June.

Apple iPhone shipments grew three per cent YoY and revenues grew two per cent YoY. The company saw sustained momentum of the iPhone 11 and a great sales start of the iPhone SE. All regions saw revenue growth.

Xiaomi declined 18 per cent YoY during the quarter, although it continued to lead the Indian smartphone market in Q2 2020.

Vivo declined 18 per cent YoY during the quarter, even though it has been steadily gaining market share in emerging markets, especially South East Asia.

The V-series, with its unique positioning and price point has helped the brand gain share in markets such as Indonesia, Vietnam and India.

Oppo declined 20 per cent YoY during the quarter, however, it performed well in the European market driven by its refreshed portfolio of A-series.

While the overall market declined, 5G continued to grow, driven by China.

"5G smartphone shipments continued their growth streak globally; growing more than 43 per cent sequentially for the quarter. The shipment penetration of 5G smartphones increased to over 11 per cent of all smartphones in Q2 2020 from seven per cent last quarter," Abhilash Kumar, Research Analyst at Counterpoint Research.

"China now accounts for more than three-quarters of 5G shipments. The price of 5G phones is also trickling down with Huawei, OPPO, vivo, Xiaomi all having 5G smartphones at mid-tier price points," Kumar said.

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