In the second quarter of 2020, Huawei surpassed Samsung in the global smartphone market for the first time and became the first manufacturer in the global smartphone market.
canalys, a market research company, recently released a 2020q2 data report on global smartphone market shipment. The report points out: in the second quarter of 2020, Huawei’s global smartphone shipment volume was 55.8 million, a decrease of 5% year-on-year. Samsung’s second largest smartphone shipment was 53.7 million, down 30% from the second quarter of 2019.
before that, SK securities company of South Korea had predicted that Huawei’s mobile phone rate in the second quarter of this year would be the first in the world. Sk securities company had predicted that Samsung’s shipment volume in the second quarter of this year would decrease by 30% year-on-year, while Huawei would surpass Samsung in a small decline. As expected, Huawei’s mobile phones are out of circulation. Huawei’s mobile phone out of the circle has broken the situation that Samsung and apple have alternately led the global smartphone market.
for a long time, Samsung and apple have taken the lead in the global smartphone market. The reason why Huawei won the championship in the second quarter of 2020 is closely related to the depression of apple and Samsung.
let’s start with apple. Apple’s smartphone shipment data shows a very obvious seasonality. The new iPhone is usually released in September, so the fourth quarter of each year is the peak sales season for Apple phones. According to data disclosure, Apple’s smartphone shipment volume in the fourth quarter accounts for more than a third of the whole year. In addition to the fourth quarter, the other three quarters are all off-season sales, inevitably in the world’s top three manufacturers in the company.
although the pricing strategy of the iPhone 11 series and the quiet release of the cheap version of the iPhone se collided with each other in the middle of 618 years, Apple’s channel sales in China in the second quarter of 2020 reached 7.4 million units, up 32% year-on-year, becoming the fastest growing mobile phone manufacturer in China’s smartphone market in 2020q2. But looking at the global smartphone market, Apple’s situation in the second quarter of this year remains unchanged.
in the second quarter of 2020, the epidemic situation in China began to be effectively controlled, and large-scale work of returning to work and production began to be carried out in various regions. At the same time, the consumer market began to recover its vitality. Huawei’s domestic smartphone market in the second quarter was 14% lower than Apple’s 32%, but its channel sales reached 36.6 million. At that time, the overseas epidemic situation was still severe, which led to the passive state of overseas smart phone market. Except in China, iPhone sales are bound to shrink in other regions.
Samsung’s smart phone business has encountered the same dilemma as apple in overseas markets. The core markets of Samsung’s smart phones, such as the United States, Brazil, India and other European countries and regions, have been seriously damaged by the outbreak of the epidemic and the subsequent blockade, so the sales volume in the second quarter is bound to be greatly reduced.
on the other hand, Samsung Electronics has a long-term share of about 1% in China’s smartphone market in the regional share data of global smartphone shipment. Therefore, even after entering the second quarter, China’s smartphone market will gradually recover its market vitality, which is just a drop in the bucket for Samsung mobile phones.
in 2020, when opportunities and challenges coexist, Huawei won the world’s top smartphone market for the first time. For a long time, Huawei has been eager to show its brand strength to consumers, suppliers and developers, and the world’s first is the best display of brand strength. However, it is still difficult for Huawei to lead the global smartphone market for a long time.
Huawei’s outstanding performance of 2020q2 smart phones relies largely on the vitality of the domestic smartphone market. According to the data report of canalys, a market research company, Huawei has become the leader in the domestic market. Its shipment volume in China increased by 8% in the second quarter. At present, more than 70% of smart phones are sold in the Chinese market.
at the same time, the data report of canalys, a city research company, also mentioned: Huawei’s overseas mobile phone shipment decreased by 27% in the second quarter of this year compared with the same period last year.
there is a group of revenue statistics by Region in Huawei’s 2019 annual report. Among them, China’s market revenue was 506.7 billion yuan, with a year-on-year growth of 36.2%; that of the Americas was 52.5 billion yuan, with a year-on-year growth of 9.6%; that of Europe, the Middle East and Africa was 206 billion yuan, with a year-on-year increase of 0.7%; and that of the Asia Pacific market was 70.5 billion yuan, a year-on-year decrease of 13.9%.
in Huawei’s annual report, it is interpreted as follows: China’s market business maintained rapid growth, the Americas and EMEA maintained stable growth, and the Asia Pacific market was affected by the fluctuation of the operator’s market investment cycle and the overseas GMS ecology of consumer business, which declined year-on-year. Generally speaking, in the revenue data of Huawei by Region in 2019, compared with its performance in the Chinese market, there is a signal that overseas business is blocked.
on the other hand, relying on the domestic smartphone market alone can not support Huawei to lead the global smartphone market for a long time. When the overseas epidemic situation is gradually controlled, Samsung will be the first obstacle for Huawei to continue to lead the global smartphone market. Leaving aside the 1% share of the Chinese market, Samsung’s market performance will recover with the recovery of market vitality in its core smartphone market.
Apple ushered in the peak season in the fourth quarter. If Huawei wants to continue to lead in the rest of 2020, the next third quarter will be crucial. At the same time, the changes in the business environment in overseas markets for Huawei will also largely affect Huawei’s performance in the global market.