China: Smartphone gross sales witness largest decline in 3 years in 2020

Smartphones gross sales in China have reportedly skilled a decline of 17 per cent (on-year) in 2020 which is alleged to be the largest decline within the final three years. According to studies, Apple was the one model that recorded a optimistic progress available in the market which is being attributed to the launch of its iPhone 12 sequence.
Apple’s iPhone 12 sequence comes with 5G connectivity and has fashions throughout a large worth vary. The iPhone 11 sequence additionally reportedly did effectively after heavy worth cuts and promotions. It was the best-selling mannequin on JD.com in the course of the e-commerce festivals gross sales. According to Counterpoint Research, the spectacular progress of iPhone 11 and 12 sequence helped Apple enhance its market share in China to 16 per cent in This fall 2020.
Sales of Huawei and Honor declined following the US commerce sanctions on China
Huawei (together with Honor) managed to amass the highest spot by capturing 41 per cent market share final 12 months. According to analysis analyst Flora Tang, gross sales of Huawei and Honor dropped following the US commerce sanctions on China.
“Following component shortages after the US trade sanctions effective September 15, sales of Huawei and Honor dropped a staggering 26 per cent (YoY) in Q4 2020. Their combined market share also slipped to 32 per cent in the same quarter”, stated Tang.
“A weakened economy and longer smartphone replacement cycles all contributed to the lackluster demand. However, China’s 5G smartphone sales surged with Chinese OEMs aggressively rolling out more value-for-money offerings”, analysis analyst Mengmeng Zhang was quoted as saying by studies.
Zhang added that 5G penetration price grew to become extra pronounced in This fall with the launch of iPhone 12 sequence. He stated that smartphones with 5G connectivity accounted for over 60 per cent of smartphones bought in China whereas in This fall 2019 they accounted for simply 5 per cent share. China’s 5G smartphones gross sales accounted for greater than 60 per cent of complete smartphone gross sales in This fall 2020.
Xiaomi, OPPO, Viv witnesses decline
Xiaomi reportedly recorded a double-digit decline of 14 per cent (YoY) final 12 months, nonetheless, it nonetheless outperformed the market. Following the great efficiency of Xiaomi 10, Redmi 9A, Note 9 Pro, Xiaomi 10 sequence and Redmi K30 sequence, Xiaomi’s gross sales bounced again strongly ranging from the second half of the final 12 months.
Sales of OPPO and Vivo declines final 12 months following the general market development. However, OPPO had its strongest quarter in This fall the place it recorded a progress of 9 per cent in comparison with Q3 on robust momentum from the OPPO A32, A72 and Reno 5 sequence.