Global Smartphone Market Amid Coronavirus: Samsung Remains in First Place and Apple Raises Market
COVID-19 (coronavirus) epidemic is paralysing the global economy and the smartphone market is one of the primary industry severely injured by the pandemic. According to the International Data Corporation(IDC), global smartphone purchases in the first quarter of 2020(Q1 2020) fell by 11.7 percent compared to the same period last year. IDC is the premier global provider of market intelligence, counselling services, and stories for the information technology, telecommunications, and consumer technology markets. However, the share of leading companies in the smartphone market still remains at the top.
The first and second place holder in the list, Samsung and Huawei have lost a few percent of their market share this year. According to IDC's report, Samsung still holds the number one position in the global smartphone market with a 21.1 percent market share. In the first quarter of 2019, Samsung's market share was 23 percent. Huawei's market share now stands at 17.8 percent, down from 18.9 percent last year. Meanwhile, US company Apple has managed to increase its share of the global smartphone market in the midst of the Corona epidemic. Apple, currently ranked third, has a market share of 13.3 percent. Apple's market share was 11.8 percent last year.
Another Chinese company that has managed to increase its market share over last year is Xiaomi which is now in fourth place. Xiaomi's market share has risen from 8.9 percent last year to 10.7 percent this year. Another important fact is that this time the Chinese smartphone brand Vivo has managed to be in the top five for the first time. Vivo has increased its share of the global smartphone market to 9 percent. Its share was 7.4 percent in the previous year. Apart from these, other brands of smartphones accounted for 28.1 percent of the total.
Smartphone Company Highlights
According to the report, in the first quarter of 2020, Samsung sold a total of 58.3 million smartphones and regained its top position with 21.1% share despite an 18.9% year-over-year decline. This is essentially due to the extended success of the A series despite the launch of its premium 5G flagship, the Galaxy S20 series. But the higher price of the S20 series smartphones is the major source of profits according to Samsung.
Huawei sold 49 million smartphones in the quarter, down 17.1 percent from a year earlier. Last year, it sold 59.1 million smartphones. They lessened the consequence of the downturn with early price cuts on Mate 30 and P30 series and in Honor's V30 and 9X series along with a diversified online-offline channel mix which helped reach consumers even during periods of hard lockdown.
The US-based company shipped 36.7 million iPhones in 1Q20, which placed the company to stay in the third position. The company increased its market share of smartphones in the 2020 Q1 by selling almost as many smartphones as in the same period last year. The shipments dropped only by 0.4% year over year, which is the feeblest annual decline among the top 3 vendors. This is primarily due to the continued success of its iPhone 11 series and the recent strategy to target budget smartphone seekers by launched iPhone SE (2020).
Xiaomi and Vivo
The growing Chinese smartphone company sold 29.5 million smartphones and Vivo sold 24.8 million smartphones in the quarter. Notably, these two Chinese companies have managed to sell more smartphones during this period than in the first quarter of last year. Compared to the first quarter of last year, Xiaomi's sales have increased by 6.1 percent and Vivo's by 7 percent. These two companies are the top smartphone companies in India as Vivo currently surpassed Samsung in the battle.