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All hope for the middle class. Cheap and premium smartphones will not help the industry recover in a pandemic

Smartphone industry will recover middle-class models

Analysts at Counterpoint Research have released their global smartphone shipments report for the first quarter of 2020. As expected, the market fell 13% due to the global coronavirus pandemic.

smartphones

All hope for the middle class. Cheap and premium smartphones will not help the industry recover in a pandemic

Realme and Xiaomi showed growth of 157% and 7% year on year, respectively. They were the only companies on the market that we’re able to improve performance under the prevailing conditions. The market share of smartphones with 5G support has grown over the past year from 1% to 8%.

For the first time since the first quarter of 2014, global smartphone shipments fell below 300 million units per quarter. China, as the world’s main smartphone market, has been hit hard by the pandemic. Smartphone shipments were down 27% from the first quarter a year earlier. As a result, the region’s share in the global market was 22% compared to 26% last year. It also influenced the supply chain. In the future, manufacturers will pay closer attention to countries such as India and Vietnam.

Samsung was the market leader, but shipments fell 18% over the year. Further decline is expected, given that all major markets are still in quarantine. Huawei is in second place, but the company has the potential for growth as the Chinese market recovers. Third place went to Apple, whose sales fell 5%, while iPhone sales revenue fell 7%.

Analysts predict that mid-range smartphones will become real hits in the current environment. Those who have no money left will not rush into buying even entry-level phones, especially in developing countries. And those who have savings will also not line up for premium smartphones.

It is expected that smartphones with 5G support will be most popular for less than $ 300, which will quickly expand the 5G market.

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