dec 2019

Page 44

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Market insight

Signs of Recovery in Global Smartphone Market While Samsung led the market with 21% share, Realme emerged as the fastest growing brand, jumping to seventh spot

T

he global smartphone market

India and China, the two top-focus markets

markets such as Europe, Latin America and

remained almost flat during

for every player in the mobile value chain. In

Middle East due to the lack of shipping new

Q3 2019, reaching 380

India, smartphone OEMs started preparing

models with Google services gives a window

million units in shipments,

early for the festive Diwali season this year

of opportunity especially Samsung, Xiaomi

as compared to 379.8 million units in Q3

with healthy channel buildups. In China,

and others to capture share away.”

2018. In terms of brands, Huawei, Realme

Huawei, Oppo and Vivo (HOV) continued

“Huawei, though will have to be careful

and Samsung registered positive growth,

to see healthy channel demand ahead of

of the inventory levels in domestic market

increasing their market share globally.

National Day Golden Week holiday break

as the market could quickly transition to

Stronger demand in India and China in

in October which led the market to grow

the upcoming 5G wave which could affect

September helped the global smartphone

a positive 6% sequentially. This along

its market share in coming quarters,”

market to halt the seven-month streak of

with upcoming holiday season in the

Pathak added.

year-on-year (YoY) declines.

next quarter, should drive up the overall

Peter Richardson, Research Director at

Commenting on the smartphone market

smartphone demand into a positive growth

Counterpoint, while commenting on the

recovery, Shobhit Srivastava, Research

territory for the second half of this year

5G progress, highlighted, “The 5G rollouts

Analyst at Counterpoint Research, noted,

compared to the last year.”

from both networks and devices over the

“The global smartphone market ended a

Huawei continued to defy the market

past twelve months have been faster than

long period of continuous YoY declines in

decline with a 4% increase in market share

the 4G era, and we expect the rollouts to

Q3 2019 due to increased shipments in

globally.

further accelerate going into 2020. 5G

Talking about Huawei’s continued

smartphones already accounted for 2%

growth, Tarun Pathak, Associate Director

of the market in Q3 2019, growing over

at Counterpoint Research, said,

200% sequentially. China has already

“The US trade ban on Huawei

commenced rolling out the 5G networks

did not affect the overall

and the massive market scale it brings for

brand’s shipments and

the entire industry will make 2020 the

growth in Q3 2019 after

breakout year for 5G. This should catalyze

the uncertainties in June.

the slowing smartphone volume demand

Huawei’s strategy to

over the past couple of years and certainly

supplement its decline

continue to boost the upward trend in the

in overseas market share

overall smartphone Average-Selling-Price

with domestic push

(ASP).”

paid off handsomely. The rising sense of

Key Takeaways:

nationalism towards

• The top three brands, Samsung, Huawei

Huawei amidst US-

and Apple, together cornered almost

China trade war coupled

half of the smartphone market, with

with aggressive go-to-market

the rest of the market left for hundreds

strategy in China helped Huawei

44 | december 2019

of other brands to compete fiercely.

boost mindshare and marketshare

• Samsung continued its growth at

domestically. Outside China, the

8.4% YoY, capturing over one-fifth of

widening gap being created in overseas

the global smartphone market. This

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