Easing Lockdown & Festive Season Aids in the Revival of Declining Smartphone Market

Easing Lockdown & Festive Season Aids in the Revival of Declining Smartphone Market

Today, smartphones have evolved to be one of the most inevitable parts of our life. In fact, people have got totally addicted to it and tend to forget the whole world while indulging in its usage, as it gives easy access to anything and everything which otherwise would be quite taxing. Although the invasion of the internet gave us the privilege to perform certain tasks such as billing, shopping, international call, and more sitting at our home, it is smartphones that eased it further by bringing it to our fingertips. The growing usage of smartphones has simplified our lives unimaginably and makes us wonder how did we even spend our lives once without this device? 

The rising use of smartphones certainly has a great demand in the market, however, the pandemic’s impact has not spared the smartphone market as well. According to sources, the smartphone market has witnessed a 26 percent decline and reached 276.02 million units in Q2 2020, which is said to be the highest drop that the market has ever suffered. However, this condition did not prolong for longer, according to research data analyzed and published by Comprar Acciones, the global smartphone market quickly rose by 32 percent quarter-over-quarter (QoQ) to touch 366 million units sales in the very next quarter- Q3 2020. This recovery has been driven by key markets such as the US, Latin America, and India. However, when comparing the numbers with Q3 2019 sales, there is still a decline of four percent in Q3 2020 sales.

Commenting on the global recovery of the smartphone market, Tarun Pathak, Associate Director, Counterpoint Research said, “Eased lockdown conditions in all key markets made way for exports and imports, thus streamlining the supply chain again. Also, the pent-up demand due to lockdowns helped the smartphone market take a recovery trajectory.”

As the market is gradually recuperating, Samsung has been the one to regain its top slot by shipping about 79.8 million units and registered 47 percent QoQ and two percent YoY growth. This number marks Samsung’s highest shipment in the last three years. However, the company has managed to revive its business in major markets like Western Europe, India, LATAM by launching its new models like the Note20 and the A-series. A-series 5G SKUs exhibited a solid uptake in the US. Also, the brand has surpassed Xiaomi and grew to be a top player in India through its M Series. 

On Xiaomi’s growth, Research Analyst Abhilash Kumar has stated that the brand has achieved this number in China through a series of campaigns and promotions while Xiaomi was undergoing a deteriorating condition in August this year. Also, in other new markets like Europe, LATAM, and the MEA the brand has expanded rapidly. However, it is been performing well in other Southeast Asian markets such as the Philippines, Vietnam, and Indonesia. 

Alongside, Huawei has emerged as the runner-up in the global market and it still displayed a deteriorating trend and marked a 20 percent drop in Q2 2020 to 14 percent in Q3 2020. While Xiaomi has raised by 75 percent QoQ and has acquired a 13 percent share for the quarter and this marks the first time when the brand has overtaken Apple and held the third position in the smartphone market. On par with the giants, the newbie Realme has shown a fast-paced growth during the quarter and it has marked 132 percent shipments volume in QoQ, and this is noted to be the toughest progress momentum in comparison with the global OEMs. 

Smartphone is having a high demand in eCommerce portals such as Amazon, Flipkart and other sites and the dealer’s special discounts and festival offers is surely attracting the customer’s attention and inducing them to buy the device. The online shopping platform also has played a vital role in elevating the smartphone market.