Worldwide smartphone shipments decreased 16.0 percent year over year in Q2, according to preliminary data from IDC. In total, companies shipped 278.4 million smartphones during Q2. 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 Q2 due to the pandemic.
From a regional perspective, Asia/Pacific (excluding China and Japan), Western Europe, and the United States declined 31.9 percent, 14.8 percent, and 12.6 percent respectively. China fared slightly better with a decline of 10.3 percent and arguably shows some early signs of market recovery.
Smartphone company highlight
Huawei for the first time reached the number 1 position with 55.8 million smartphones shipped in Q2 despite a small decline of 5.1 percent year over year. With the overall market declining even faster, Huawei also achieved its highest-ever share (20.0 percent) of the global smartphone market. This was driven by Huawei's tremendous growth in China – almost 10 percent year on year – which offset the large declines the company faced in every other region. Looking forward the impact of the US technology ban will continue to create uncertainty for Huawei in foreign markets.
Samsung shipped 54.2 million smartphones in Q2, finishing a close second with 19.5 percent share. However, the Korean giant suffered a 28.9 percent year-on-year decline, the most significant among the Top 5 vendors. While the A series continues to perform well contributing to the majority of its volume, premium devices such the Galaxy S20 and the Galaxy Z Flip, unfortunately launched in the peak of the pandemic, are facing sales challenges despite price reductions.
Apple shipped 37.6 million iPhones in Q2, which placed the company in third with 13.5 percent share of the market. iPhone shipments managed to climb 11.2 percent 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, which bodes extremely well for the vendor in this time of crisis where consumers are shifting towards more budget-friendly devices. Looking ahead, the launch of four new potential models will signal Apple's entry in the world of 5G and challenge Android 5G devices that have been out for more than a year.
Xiaomi shipped 28.5 million devices maintaining its number four position and achieving a 10.2 percent market share despite a decline of 11.8 percent. 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 percent 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 percent market share despite a 18.8 percent year-on-year decline. Roughly 60 percent 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. In China, the A series was again the volume driver while the new Reno 4 series performed much better than expected due to very competitive pricing. Meanwhile, in India, Oppo's second largest market, the vendor faced challenges in both supply and demand with factory shutdowns and consumers facing the anti-China sentiment.
