Top

Global smartphone ASP up 10% YoY in Q2 2020 even as shipments see highest ever decline

The global smartphone market wholesale average selling price (ASP) increased 10% YoY in Q2 2020 even as the shipments declined the highest ever at 23% YoY. Overall, the smartphone industry revenue declined 15% YoY during the quarter.

 Exhibit 1: Smartphone Wholesale ASP ($) by Regions*

 

* These ASPs are for Shipments

The ASPs for all the regions increased except Latin America. There are several reasons for this increase. While the COVID-19 pandemic had its effect on the overall smartphone market, the premium segment was much resilient, declining at a modest 8% YoY during the quarter as compared to the highest ever global smartphone market decline. The economic impact of the pandemic on the potential user base of the premium segment was less when compared with other customer segments. This is also indicated by the demand for Apple, the largest player in the premium segment. While shipments for most of the OEMs declined in Q2 2020, shipments for Apple increased 3% YoY and iPhone revenues increased 2% YoY.

There was also an increased dependency on mobile phones during the lockdown, with work from home, study at home, productivity applications, gaming, entertainment and other content consumption happening through mobile phones in varying degrees. This also propelled some consumers to upgrade their devices for a better overall user experience.

The uptick in 5G shipments also contributed to the growth of ASP. During the quarter, 5G contributed to 10% of the total global handset shipments but contributed to 20% of the total handset revenue since most of the 5G devices in Q2 2020 were in the premium segment. China was the largest contributor to 5G sales. 72% of the global 5G handset revenue came from China. Most of this was driven by the push from Huawei. Overall, the smartphone ASP in China increased 12% YoY and the region contributed to over 34% of the global smartphone revenue, highest since 2016. This was also because while all the other major economies were still suffering from the severe impact of COVID-19, China was already on the path to recovery.

On the flip side, the demand for lower price tier models was severely impacted. Entry-level devices are usually bought offline, and most of the global markets were in some stages of lockdown during Q2 2020. Consumer sentiment was also low, with users in the low-middle class avoiding discretionary purchases.

Overall, the reduction in demand for lower price tier devices due to economic impact and offline retail closure, the resilience of the premium segment, and the uptick in 5G sales, especially in China, contributed to the rise of smartphone ASP during the quarter.

Exhibit 2: Global smartphone Shipments Revenue Share by OEMs

 

Within the OEMs, Apple led the global smartphone revenues, capturing one-third of the pie, followed by Huawei and Samsung. Notably, Apple also captured around 59% of the global smartphone industry profit in Q2 2020.

Huawei (including Honor), driven by the China market, reported its highest ever global revenue share at 20% in Q2 2020. This was the first time that Huawei surpassed Samsung both in terms of shipments as well as revenue. This was because of Huawei’s continued push in China, the first country to recover from COVID-19. But as markets outside China recover, it will be difficult for Huawei to maintain this lead in coming quarters.

 

The analysis is from Counterpoint’s Market Monitor Service, tracking shipments for 140+ brands in 60+ countries.

Varun is a Senior Analyst at Counterpoint Research based out of Gurgaon. In Counterpoint, he closely tracks mobile devices and ecosystem with a focus on Emerging Markets. He also tracks Global Refurbished Smartphone market. He started his career as a Consultant with Infosys Limited where he was able to identify strategic avenues for business growth through deep research and analysis of markets and companies in various domains. He holds a Master of Business Administration in Marketing from Institute of Management Technology, Ghaziabad and a bachelors degree from Coventry University, UK.

Apple Snack Pack

PREMIUM

Understanding iPhone

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.