Apple, Huawei Boost Share as Q1 China Smartphone Shipments Fall: Canalys

Apple and Huawei every captured a better share of China’s smartphone market within the first quarter, based on knowledge from analysis agency Canalys launched on Friday.

Total smartphone shipments within the nation within the three months that ended March fell 18 % from a 12 months earlier to 72.6 million, the data showed, as the coronavirus outbreak took a toll on Chinese provide chains and shopper demand.

China’s Huawei, the No.2 smartphone vendor on the planet by quantity, grabbed 41.four % of the home market, up from 33.9 % a 12 months earlier. Its general unit shipments rose about 1 % to 30.1 million.

That progress got here on the expense of Android rivals Oppo, Vivo, and Xiaomi. The three corporations noticed shipments plunge by 26 %, 19 %, and 26 %, respectively.

All 4 corporations rely considerably on abroad gross sales for income, though Huawei will rely on the home market more and more as its newest gadgets don’t run the whole suite of Google Mobile Services on account of restrictions positioned on it by the US authorities.

Apple shipments sank greater than four %, marking a major dip however beneath the trade common. However, its share of the market grew, hitting 8.5 % from 7.three % final 12 months.

Apple reported gross sales and earnings that beat Wall Street expectations on Thursday, with Chief Executive Officer Tim Cook saying China gross sales had been “headed in the right direction” as the nation reopens from restrictions imposed to curb the outbreak of the novel coronavirus.

Apple is anticipated to launch its first 5G cellphone later this 12 months. Online retailers in China just lately slashed costs of the iPhone 11, and analysts stated the corporate’s new, mid-range iPhone SE was promoting higher than anticipated within the nation.

After enduring years of market contraction, Chinese Android smartphone gamers had been hoping that releasing new 5G fashions would immediate customers to buy new gadgets.

But analysts now count on customers will delay buying 5G telephones, opting as a substitute for cheaper, nonetheless serviceable 4G gadgets as a coronavirus-induced recession looms.

“Looking forward, we stay cautious concerning the pace of restoration in China’s smartphone market this 12 months, and preserve our best-case state of affairs of 326 million shipments for 2020, together with 137 million 5G smartphones,” stated Nicole Peng, vice chairman of mobility at Canalys.

“The macroeconomic situation is a huge red flag for China’s market players this year.”

Market analysis agency TrendForce stated on Thursday it expects 2020 smartphone output globally to stoop 11.three % to 1.24 billion.

© Thomson Reuters 2020

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