One in Three Smartphones Sold in China in 2Q20 was a 5G Phone

Smartphone sales in China declined 17% in the second quarter of 2020, according to Counterpoint Research. However, the sales increased 9% compared with 1Q20, indicating some signs of recovery. COVID-19 has been mostly contained in China but the demand for smartphones is yet to recover to pre-COVID levels.

“Although China’s commercial activities have resumed since the pandemic has subsided, consumer confidence remains low. Both OEMs and Chinese operators are actively pushing 5G smartphones through lowering prices of 5G devices as well as 5G plans. This has increased the adoption of 5G, with one-third of the total smartphone sales during the quarter were 5G devices, the highest adoption in the world. However, this was still not able to offset the overall market decline,“ said Mengmeng Zhang, Research Analyst at Counterpoint Research.

Huawei continues to be the best performer in the China market, grabbing 46% market share in the quarter. The company achieved 14% growth compared with the same period last year despite the overall market slowdown. In terms of growth, Apple was the fastest-growing key OEM. US phone maker grew an impressive 32% due to the continued popularity of the iPhone 11 series and price cuts. June was the best month in terms of smartphone sales so far this year after COVID-19 outbreak, driven by surge in sales by Xiaomi and Huawei.

During the second quarter, 33% of smartphones sold were 5G enabled compared to just 16% in Q1. The proportion was even higher in June, where more than 40% of smartphones sold were 5G capable. Huawei leads in 5G smartphone sales, accounting for 60% of the market, followed by Vivo, OPPO, and Xiaomi. 5G smartphones in China are still priced in the mid-to-high price range of USD$400 and above, however, prices are quickly moving towards lower-tier price bands. High-end 5G smartphones are predominantly from Huawei.