Published On: Fri, Dec 4th, 2020

Gartner: Q3 smartphone sales down 5.7% to 366M, rupturing COVID-19 declines in Q1, Q2

We are now into a all-important holiday sales period, and new numbers from Gartner indicate to some liberation underway for a smartphone marketplace as vendors hurl out a raft of new 5G handsets.

Q3 smartphone total from a analysts published currently showed that smartphone section sales were 366 million units, a diminution of 5.7% globally compared to a same duration final year. Yes, it’s a drop; though it is still a transparent alleviation on a initial half of this year, when sales slumped by 20% in any quarter, due mostly to a effects of COVID-19 on spending and consumer certainty overall.

That certainty is being serve bolstered by some other signals. We are entrance out of a comparatively clever fibre of sales days over a Thanksgiving weekend, traditionally a “opening” of a holiday sales cycle. While sales on Thursday and Black Friday were during a reduce finish of expected estimates, they still set annals over prior years. With a lot of tech like smartphones mostly bought online, this could indicate to stronger numbers for smartphone sales as well.

Black Friday online offered comes in $9B, $3.6B on smartphones

On tip of that, final week IDC — that also marks and analyses smartphones sales — published a news presaging that sales would grow 2.4% in Q4 compared to 2019’s Q4. Its take is that while 5G smartphones will expostulate buying, prices still need to come down on these newer era handsets to unequivocally see them strike with wider audiences. The normal offered cost for a 5G-enabled smartphone in 2020 is $611, pronounced IDC, though it thinks that by 2024 that will come down to $453, expected driven by Android-powered handsets, that have collectively dominated smartphone sales for years.

Indeed, in terms of brands, Samsung, with a Android devices, continued to lead a container in terms of altogether units, with 80.8 million units, and a 22% marketplace share. In fact, a Korean handset builder and China’s Xiaomi were a usually dual in a tip 5 to see expansion in their sales in a quarter, respectively during 2.2% and 34.9%. Xiaomi’s numbers were clever adequate to see it pass Apple for a entertain to turn a number-three container in terms of altogether sales rankings. Huawei only about hold on to series two. See a full draft serve down in this story with some-more detail.

Also value noting: Overall mobile sales — a figure that includes both smartphones and underline phones — were down 8.7% to 401 million units. That underscores not only how few underline phones are offered during a impulse (smartphones can mostly even be cheaper to buy, depending on a brands concerned or a conduit bundles), though also that those reduction worldly inclination are saying even some-more sales vigour than some-more modernized models.

Smartphone slump: It’s not only COVID-19

It’s value remembering that even before a tellurian health pandemic, smartphone sales were confronting negligence growth. The reasons: After a duration of outrageous unrestrained from consumers to collect adult devices, many countries reached marketplace penetration. And then, a latest facilities were too incremental to coax people to sell adult and compensate a reward on newer models.

In that context, a vast wish from a attention has been 5G, that has been marketed by both carriers and handset makers as carrying some-more information potency and speed than comparison technologies. Yet when we demeanour during a wider roadmap for 5G, rollout has remained patchy, and consumers by and vast are still not entirely assured they need it.

Thanksgiving online offered hits record $5.1B, adult 21.5% on 2019, 47% of sales around mobile

Notably, in this past quarter, there is still some justification that emerging/developing markets continue to have an impact on expansion — in contrariety to new facilities being drivers in penetrated markets.

“Early signs of liberation can be seen in a few markets, including tools of mature Asia/Pacific and Latin America. Near normal conditions in China softened smartphone prolongation to fill in a supply opening in a third entertain that benefited sales to some extent,” pronounced Anshul Gupta, comparison investigate executive during Gartner, in a statement. “For a initial time this year, smartphone sales to finish users in 3 of a tip 5 markets i.e., India, Indonesia and Brazil increased, flourishing 9.3%, 8.5% and 3.3%, respectively.”

The some-more certain Q3 total coincide with a duration this summer that saw new COVID-19 cases negligence down in many places and a diminution of many restrictions, so now all eyes are on this entrance holiday period, during a time when COVID-19 cases have picked adult with a vengeance, and with no rollout (yet) of large-scale vaccination or healing programs. That is carrying an unavoidable drag on a economy.

“Consumers are tying their discretionary spend even as some lockdown conditions have started to improve,” pronounced Gupta of a Q3 numbers. “Global smartphone sales gifted assuage expansion from a second entertain of 2020 to a third quarter. This was due to restrained direct from prior quarters.”

Digging into a numbers, Samsung has hold on to a tip spot, nonetheless a expansion was significantly reduction clever in a quarter. Even with that slump, Samsung is still a prolonged approach ahead.

That is in partial given number-two Huawei, with 51.8 million units sold, was down by some-more than 21% given final year. It has been carrying a tough time in a arise of a open family predicament after sanctions in a U.S. and U.K., due to accusations that a apparatus is used by China for spying. (Those U.K. sanctions, indeed, have been brought adult in timing, only as of final night.)

That also led Huawei progressing this month to endorse a long-rumored devise to sell off a Honor smartphone division. That understanding will engage offered a division, reportedly valued during around $15 billion, to a consortium of companies.

Huawei sells bill phone section Honor to state-backed firms, placement partners

It will be engaging to see how Apple’s tiny diminution of 0.6% to 40.6 million units to Xiaomi’s 44.4 million will change in a subsequent entertain on a behind of a association rising a new raft of iPhone 12 devices.

“Apple sole 40.5 million units in a third entertain of 2020, a diminution of 0.6% as compared to 2019,” pronounced Annette Zimmermann, investigate clamp boss during Gartner, in a statement. “The slight diminution was especially due to Apple’s behind conveyance start of a new 2020 iPhone generation, that in prior years would always start mid/end September. This year, a launch eventuality and conveyance start began 4 weeks after than usual.”

Oppo, that is still not accessible by carriers or sell partners in a U.S., dull out a tip 5 sellers with only underneath 30 million phones sold. The fact that it and Xiaomi do so good notwithstanding not unequivocally carrying a phone participation in a U.S. is an engaging covenant to what kind of purpose a U.S. plays in a tellurian smartphone market: outrageous in terms of perception, though maybe reduction so when a chips are down.

“Others” — that difficulty that can take in a prolonged tail of players who make phones, continues to be a outrageous force, accounting for some-more sales than any one of a tip five. That underscores a fragmentation in a Android-based smartphone industry, though all a same, a common numbers were in decline, a pointer that consumers are indeed solemnly stability to connect around a smaller organisation of devoted brands.

 

Source: Gartner (November 2020)

 

 

About the Author