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Apple, Huawei Boost Market Share, as First-Quarter China Smartphone Shipments Fall: Canalys

Total smartphone shipments in China in the three months that ended March fell 18 percent from a year earlier to 72.6 million.

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Apple, Huawei Boost Market Share, as First-Quarter China Smartphone Shipments Fall: Canalys

Market research firm TrendForce it expects 2020 smartphone output globally to slump 11.3 percent

Highlights
  • Huawei grabbed 41.4 percent of the Chinese market
  • Apple's share of the market grew, hitting 8.5 percent
  • Analysts now expect consumers will delay purchasing 5G phones

Apple and Huawei each captured a higher share of China's smartphone market in the first quarter, according to data from research firm Canalys released on Friday.

Total smartphone shipments in the country in the three months that ended March fell 18 percent from a year earlier to 72.6 million, the data showed, as the coronavirus outbreak took a toll on Chinese supply chains and consumer demand.

China's Huawei, the No.2 smartphone seller in the world by volume, grabbed 41.4 percent of the domestic market, up from 33.9 percent a year earlier. Its overall unit shipments rose about 1 percent to 30.1 million.

That growth came at the expense of Android rivals Oppo, Vivo, and Xiaomi. The three companies saw shipments plunge by 26 percent, 19 percent, and 26 percent, respectively.

All four companies rely significantly on overseas sales for revenue, although Huawei will depend on the domestic market increasingly as its latest devices do not run the complete suite of Google Mobile Services due to restrictions placed on it by the US government.

Apple shipments sank more than 4 percent, marking a significant dip but below the industry average. However, its share of the market grew, hitting 8.5 percent from 7.3 percent last year.

Apple reported sales and profits that beat Wall Street expectations on Thursday, with Chief Executive Officer Tim Cook saying China sales were "headed in the right direction" as the country reopens from restrictions imposed to curb the outbreak of the novel coronavirus.

Apple is expected to release its first 5G phone later this year. Online retailers in China recently slashed prices of the iPhone 11, and analysts said the company's new, mid-range iPhone SE was selling better than expected in the country.

After enduring years of market contraction, Chinese Android smartphone players were hoping that releasing new 5G models would prompt consumers to purchase new devices.

But analysts now expect consumers will delay purchasing 5G phones, opting instead for cheaper, still serviceable 4G devices as a coronavirus-induced recession looms.

“Looking ahead, we remain cautious about the speed of recovery in China's smartphone market this year, and maintain our best-case scenario of 326 million shipments for 2020, including 137 million 5G smartphones," said Nicole Peng, vice president of mobility at Canalys.

"The macroeconomic situation is a huge red flag for China's market players this year."

Market research firm TrendForce said on Thursday it expects 2020 smartphone output globally to slump 11.3 percent to 1.24 billion.

© Thomson Reuters 2020


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