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| TrendForce: The phone industry experiences a sharp decline in the second quarter of 2020 |
The latest TrendForce report estimates that global smartphone production will reach 268 million units by the second quarter of 2020, down from 16.7% in the same period last year.
Due to the new Coronavirus (COVID-19) epidemic, the smartphone industry has generally slowed and factories and retail stores have closed, causing massive delays in the supply chain and putting sales at risk.
Among the top six smartphone brands in the world, Samsung was the only one that saw a drop in the second quarter of 2020, but it was also the best-selling product in the quarter. The best brands are ranked according to the number of units sold: Samsung, Huawei, Apple, Xiaomi, OPPO and Vivo.
Samsung's decline is due to lower sales in the markets most affected by (Covid-19), including Europe, the United States and India. TrendForce predicts that as the US ban continues, Samsung will regain market share from Huawei and that rising tensions between China and India will undermine Huawei’s smartphone business.
Huawei continues to boost its sales in the Chinese domestic market, as it sold 52 million units in the second quarter of 2020. With other brands expected to reach the market by the end of this year, Huawei has to deal with the increasing competition. Since the first US ban in 2019, Huawei has seen another sharp drop in sales in the major smartphone markets outside of China.
For Apple, revenue was up 8% year-over-year due to unexpectedly announced surplus sales of the upcoming iPhone SE and strong sales of the iPhone 11 (iPhone 11). To 41 million units. Apple will release the iPhone 12, but the price is expected to increase to support 5G networks. The US may ban TikTok and Tencent, owner of the WeChat messaging app, which could have a marginal impact on iPhone sales in some markets.
Xiaomi ranked fourth with 29.5 million units sold, while Oppo, which also includes the other brands Realme, OnePlus and Oppo, ranked fifth with 27.5 million units. Vivo ranks sixth with sales of 26.5 million units.
With the onset of popularity, Chinese retailers have been actively buying smartphones, resulting in a 10% quarterly sales growth of these Chinese brands. These brands continue to promote their entry-level products in overseas markets as they gain a foothold and eventually sell mid and high end phones in more global markets.
According to the report, the overall market expects production to rebound in 2021 as 5G networks increase. In the coming months, Qualcomm and MediaTech will introduce low-end 5G chip solutions that will impact the markets. Cheaper smartphones. . TrendForce predicts smartphones will reach 1.24 billion by the end of 2020, down 11.3% year-on-year.