Although smartphone sales have been slowing for a while now the sharp decline in Q1 of 2020, although not surprising, have been dramatic — a massive 272 million units from Q4 2019.
Counterpoint Research are reporting that the sharp decline in sales in Q1 of this year represents a 13% decrease YoY with some of the biggest brands seeing bit hits to their bottom lines. The decline was started by a 27% decrease in shipment from China and the Chinese market share of the smartphone market dropping from 26% a year ago to 22% now.
As lockdowns were imposed in many countries through out the world the demand for new smartphones decreases as many people saw their incomes decline, drastically. The major brands saw a sharp decline in sales almost across the board with Xiaomi and realme bucking the trend, thought to be because India, which represents a large portion of sales for these major brands, implemented their lockdown at the beginning of March.
Xiaomi saw an increase of 7% and realme 157% from this time last year. realme were only a fledgling company this time last year and their result represents how well they have grown in the past 12 months, mostly before the pandemic hit.
Samsung (13 million), Huawei (10.1 million), Apple (2 million), OPPO (3.4 million) and Vivo (2.3 million) all saw sharp declines in smartphone shipments, although most of them stayed constant in their percentage share of the market.
These decrease show no signs of abating as the world is still struggling to cope and find a way through or past the COVID-19 pandemic. Not only are less smartphones being made and shipped but you can be sure that less are being purchased as most people look to tighten their belts.
This may lead to manufacturers diversifying their manufacturing along with different pricing strategies in the future. Once we all get through the pandemic hopefully the market is improved for all of us and we can get better devices for cheaper through companies streamlining their manufacturing and distribution.
