With former rising star Huawei out of the way due to US sanctions, another Chinese manufacturer is emerging to take over the smartphone market — Xiaomi. The company could grow its shipments by a whopping 83% in the second quarter of 2021, making it the vendor with the second highest market share at 17%. It's only narrowly surpassed by Samsung with a share of 19%.
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Research house Canalys tracked 31.9 million smartphone shipments in the U.S. for the second quarter, down 5% from last year. Diverging plotlines between the novel coronavirus pandemic and the trade war with China are putting intense pressures on the industry in terms of cost and product strategy.
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The coronavirus has led to lockdowns all over the world and left many people with less to no income or in fear of a recession. Combine that with closed factories, and you have a recipe for economic impacts rippling through all industries. The smartphone market is not immune to these effects, either, and worldwide shipments have fallen by 13% year-over-year (YOY) due to coronavirus. Companies moved only 272 million units in Q1 2020, which is the lowest level since 2013.
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Ever since the global smartphone market started to decline back in 2017, it has stubbornly remained stagnant. Surprisingly, the trend has finally reversed itself as the global smartphone market has managed to eke out a 1% growth in Q3 2019, just barely reversing the two-year-long decline. The resurgence was led by market share leaders Samsung and Huawei, who experienced double-digit annual growth rates from Q3 2018. On the other hand, two of the top five smartphone vendors — Apple and Xiaomi — experienced single-digit declines in market share, while the number five Oppo saw some minor growth.
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The smartphone market isn't what it used to be anymore. By now, pretty much every person in North America owns at least one of these devices, and combined with mostly iterative improvements and slowing innovation from manufacturers, demand has naturally decreased. Thus, shipments in Q1 2019 are down to 36.4 million, 18 percent less than last year's Q1 record-breaking 44.4 million. This is the steepest fall ever recorded.
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Huawei is on a success rocket with consumers around (most of) the world. In a few years, the company turned from the cheap smartphone maker we barely looked at to a flagship machine. That strategy has paid off. Once out of the top ranking of smartphone brands, it now sits comfortably in third place, behind Samsung and Apple, growing while their numbers continue to shrink. But Huawei is not content about that bronze medal, it wants gold and it aims to get it soon.
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Sales figures for the second quarter of the year are in and it would be fair to say the smartphone industry is in rude health. According to research from Strategy Analytics, global shipments saw solid growth, up 6% year-on-year to 360.4 million. While Samsung and Apple predictably held on to first and second spots in the manufacturer rankings, Chinese challengers Xiaomi, Huawei, and Oppo recorded significant gains as they worked to close the gap.
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