Both Huawei Technologies and Apple increased their share of the Chinese smartphone market in the second quarter of 2020. As the overall mobile phone market continues to shrink, it has bucked the trend.
Huawei sold 40.2 million devices in China in the second quarter, an increase of 8% over the same period last year, thus increasing its market share to a dominant 44%.
Apple’s sales increased by 35% year-on-year to 7.7 million units, even though its sales accounted for only 8.5% of the entire market.
The total shipment of smart phones in China was 97.6 million units, a decrease of 7% from the previous year.
This contraction shows that despite China’s economic recovery due to the coronavirus-related lockdown, consumers are still tightening their belts and delaying the purchase of new phones.
Next-generation 5G smartphones accounted for nearly half of shipments in the second quarter, with 39 million mobile phones sold, an increase of 260% over the previous quarter.
Canalys analyst Luis Liu said: “Local brands are promoting the penetration of 5G in their product portfolio to support operators’ efforts to transition existing 4G users to 5G, which exceeded 100 million users in July.”
“Huawei’s goal is to become China’s 5G brand. Its 5G product portfolio exceeded 60% of its total shipments in the second quarter.”
Huawei is still in a quarrel with Washington. In May, the US Department of Commerce imposed other restrictions on the company’s US suppliers. Analysts said that if these orders are fulfilled, it may weaken the company’s chip department and overseas telephone sales.
Shipments of Android-based brands Vivo, Oppo and Xiaomi dropped by 13%, 19% and 19%, respectively.
© Thomson Reuters 2020
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