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| Apple and Huawei dominated the Chinese market in the first quarter of 2020 |
A new report by research company Canalys showed today that Apple and Huawei took control of the Chinese smartphone market in the first quarter of this year.
Data show that in the quarter ended March 31, total smartphone shipments to China decreased 18% year-on-year to 72.6 million due to news from the Coronavirus (COFID-19) COVID-19 which led to losses in the supply chain and consumer demand In China.
The Chinese company Huawei is the second largest smartphone manufacturer in the world after its South Korean competitor Samsung. Samsung took 41.4% of the Chinese market, compared to 33.9% a year ago. Total deliveries increased by about 1% to 30.1 million. The increase was at the expense of Huawei's domestic competitors such as OPPO, Vivo and Xiaomi, which decreased by 26%, 19% and 26%, respectively.
The four companies rely heavily on overseas sales to generate revenue. However, due to the restrictions imposed by the United States government and the fact that their modern devices do not have Google Mobile services, Huawei is increasingly dependent on the domestic market.
Apple shipments to the U.S. fell more than 4%. Although the decline is very large, it is still below the industry average. However, market share increased from 7.3% in the previous year to 8.5%.
Apple announced on Thursday that sales and profits exceeded Wall Street's expectations. Chief Executive Tim Cook said sales to China would "go in the right direction" if China reopened and eased the spread of the virus.
Apple is expected to release the first iPhone to support 5G networks later this year. Chinese online retailers have lowered the iPhone 11 price recently, and analysts said the mid-range iPhone SE of the new iPhone SE is selling better in China than expected.
After years of slowing the market, Android smartphone manufacturers have been hoping that the introduction of new 5G models will encourage consumers to buy new devices. However, analysts now assume that consumers will delay buying 5G phones and switching to cheap 4G phones due to the stagnation caused by the spread of the virus.
(Nicole Ping) - Kanales said: "We remain cautious about the recovery rate in the Chinese smart phone market this year, with the best delivery of 326 million units in 2020, 137 of which added that millions of smartphones support the generation networks V. "The macroeconomic situation this year is a big red mark for Chinese market participants."