Huawei lands top spot in second quarter smartphone market

Worldwide smartphone shipments decreased 16.0% year over year in the second quarter of 2020 (2Q20), according to preliminary data from the IDC Worldwide Quarterly Mobile Phone Tracker. In total, companies shipped 278.4 million smartphones during 2Q20. Although this a larger decline than in the first quarter, it was expected as major economies around the globe were in lockdown for the majority of 2Q20 due to the pandemic.

“Smartphones shipments suffered a huge decline in Q2 as they directly correlate to consumer spending, which had a massive reduction due to the global economic crisis and rising unemployment brought on by the widespread lockdowns,” said Nabila Popal, research director with IDC’s Worldwide Mobile Device Trackers. “This, combined with the closure of retail stores, especially in regions where online shopping is less common, compounded the negative effect on smartphone sales. In addition, consumers spent significantly other technologies, such as PCs, monitors, and tablets, to facilitate mandatory work from home and distance learning, leaving an even smaller share in the shrinking consumer wallet for smartphones.”

From a regional perspective, Asia/Pacific (excluding China and Japan), Western Europe, and the United States declined 31.9%, 14.8%, and 12.6% respectively. China fared slightly better with a decline of 10.3% and arguably shows some early signs of market recovery.

“The smartphone supply chain ground to a halt when the pandemic hit. However, recovery, specifically in China, has been strong,” said Ryan Reith, vice president, Worldwide Mobile Device Trackers. “The question now becomes what does demand look like with so much uncertainty around the world. We have already seen OEMs moving more aggressively with their 5G portfolios both in terms of production and price points. However, we still see consumer demand for 5G being low, so the supply-side push is likely to produce very high-priced competition.”

Smartphone Company Highlights

Huawei for the first time reached the number 1 position with 55.8 million smartphones shipped in 2Q20 despite a small decline of 5.1% year over year. With the overall market declining even faster, Huawei also achieved its highest-ever share (20.0%) of the global smartphone market.

Samsung shipped 54.2 million smartphones in 2Q20, finishing a close second with 19.5% share. The Korean giant suffered a 28.9% year-on-year decline, however, the most significant among the Top 5 vendors.

Apple shipped 37.6 million iPhones in 2Q20, which placed the company in third with 13.5% share of the market. iPhone shipments managed to climb 11.2% year over year thanks to the continued success of its iPhone 11 series and the timely launch of the new SE (2020). The new SE found success as it managed to effectively target the lower-priced segment.

Xiaomi shipped 28.5 million devices maintaining its number four position and achieving a 10.2% market share despite a decline of 11.8%. Although Xiaomi faced a large year-on-year drop in both China and India, the lockdown and anti-China sentiment in India had a larger impact on the vendor with a 50% year-on-year drop despite maintaining its number one position.

OPPO returned to the Top 5 this quarter with 24.0 million units and 8.6% market share despite a 18.8% year-on-year decline. Roughly 60% of OPPO’s shipments were to its domestic market of China, which was a key factor in getting the vendor back into the top 5 globally.

Top 5 Smartphone Companies, Worldwide Shipments, Market Share, and Year-Over-Year Growth, Q2 2020 (shipments in millions of units)
Company 2Q20 Shipment Volumes 2Q20 Market Share 2Q19 Shipment Volumes 2Q19 Market Share Year-Over-Year Change
Huawei 55.8 20.0% 58.7 17.7% -5.1%
Samsung 54.2 19.5% 76.2 23.0% -28.9%
Apple 37.6 13.5% 33.8 10.2% 11.2%
Xiaomi 28.5 10.2% 32.3 9.7% -11.8%
OPPO 24.0 8.6% 29.5 8.9% -18.8%
Others 78.4 28.2% 101.0 30.5% -22.3%
Total 278.4 100.0% 331.5 100.0% -16.0%
Source: IDC Quarterly Mobile Phone Tracker, July 30, 2020