China smartphone shipments to contract in 3Q20, says Digitimes Research

Sean Lin, DIGITIMES Research, Taipei 0

Smartphone shipments to the China market are expected to decline both sequentially and annually in the third quarter of 2020, after experiencing a robust on-quarter growth in the previous quarter, according to Digitimes Research.

Smartphones sales in China surged 104.6% sequentially in the second quarter thanks to the easing of the coronavirus impacts, economic stimulus measures and the launch of new hanset models, Digitimes Research has found.

Second-quarter smartphone shipments in China also represented a mild 1.4% growth from a year earlier.

Huawei, Vivo, Oppo, Xiaomi and Apple were the top-five handset vendors in China in the second quarter, with their combined market share reaching 98.1%, up 1.4pp from a quarter earlier.

As the current strength of components pull-ins by Chinese handset brands is not as strong as expected for the third-quarter traditional peak season and the effects of some stimulus measures are beginning to wane, smartphones shipments in China are expected to contract 7.9% on year in the third quarter, Digitimes Research estimates.

But shipments from Huawei are expected to remain robust in the third quarter, allowing the vendor to eventually take up a nearly 50% market share in the third quarter.