The economy as a whole is in turmoil right now thanks to the coronavirus pandemic, and that’s hitting smartphones sales hard. A report from Canalys this week reveals that the industry as a whole saw its biggest decline ever this past quarter.
Cutting right to the chase, smartphone shipments fell by 272 million units in Q1 of 2020, down 13% from Q4 2019. That’s not only the biggest drop we’ve ever seen in the smartphone market as a whole, but also the lowest level since 2013. Yikes.
Obviously, the impact varies from company to company. Samsung, for example, kept its top spot in the industry but saw smartphone sales drop 17% to 60 million units due to the coronavirus. Huawei saw a similar year-over-year drop, but part of that is due to the ongoing US Entity List situation. Even Apple saw a considerable dip with a drop of 8%.
Some brands, though, did manage to positively grow. Xiaomi saw a 9% jump from Q1 2019 shipping just over 30 million units while Vivo saw a 3% jump with a little over 24 million phones shipped. As a whole, though, the smartphone market saw just 272.5 million devices shipped in Q1 of 2020 compared to 313.9 million in Q2 of 2020.
Clearly, people just aren’t spending their money on new smartphones in these uncertain times.
However, the overall picture remains the same with Samsung leading the charge followed by Huawei and Apple securing the second and third spot respectively. Xiaomi and Oppo are still amongst the top 5 on the list with plenty of other Chinese brands following in.
According to Counterpoint, the effects of the pandemic are going to worsen in Q2 2020. Some companies are going to suffer more than others with the exception of Chinese OEMs as the region has started recovering from the epidemic so the likes of Huawei and Oppo will see less of an impact in the next quarter.
Samsung, on the other hand, is going to need more time to recover as all major markets of the Korean phone maker are under lockdown.