2020 has not been a good year for smartphone manufacturers. The initial growth prospect that was driven by the introduction of 5G has since been stalled by the pandemic.
According to the latest quarter report by Gartner, worldwide sales dropped 20.4% for the second quarter, continuing the drop in sales recorded in Q1.
During the quarter, smartphone sales reached 294.6 million units across the globe. This is significantly lower than the 370.2 million units sold in the second quarter of 2019.
The report attributed the drop in sales to the global lockdowns and slowed economies caused by the COVID-19 pandemic. It explained that many users aren’t interested in changing their smartphone. It added that most of their disposable income is diverted to upgrading their home offices for the new trend of remote work.
Huawei Pushes for the Top as Samsung Recorded Largest Decline in Sales
Among the top five smartphone manufacturers, Samsung was hit hardest as its sales dropped a massive 27.1% year-over-year. According to Gartner’s Senior Research Director, Anshul Gupta, the demand for the manufacturer’s flagship S Series smartphones did little to revive its sales globally.
Although Huawei also experienced a decline in smartphone sales year-over-year, it experienced a 27.4% growth, quarter-over-quarter. The quarter’s growth added with Samsung’s huge decline pushed it closer to Samsung (18.6%) on the top of the sales chart with a market share of 18.4%.
Huawei’s smartphone sales totalled 54 million units in Q2, a 6.8% decline from the 58 million sold during the same quarter last year,
Gupta attributed the growth to Huawei’s performance in China. He added that Huawei has extended its lead in the market, capturing 42.6% of China’s smartphone market in the second quarter of 2020.
Apple sees tiny decline
Compared to other manufacturers, Apple’s smartphone sales fared better as sales growth were nearly flat year-over-year. Apple sold 38 million iPhones in the second quarter of 2020, a decline of 0.4% year-over-year.
Similar to Huawei, Apple sales grew quarter on quarter despite the effects of the pandemic. According to Annette Zimmermann, research vice president at Gartner, the improved business environment in China helped Apple achieve growth in the country.
The introduction of the new iPhone SE also helped encourage users of older phones to upgrade their smartphones.
Summary
Almost all major smartphone markets, except China, continued to face some form of shelter-in-place restrictions for most of the quarter. This forced a further drop in sales.
In China, demand for smartphone increased but it was not enough as sales still dropped about 7% for the quarter. India, on the other hand, saw the largest drop falling 46% due to strict lock-down protocols.
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