2019 Q2 Archives - Counterpoint

US Market Declines 1.5% in 2Q19; Samsung, LG Weak while Apple Sustains Growth

Smartphone volumes fell 1.5% during the quarter mainly due to weakness of high-end Samsung and LG flagships. After record pre-sales, the S10 smartphone family sales decelerated.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul

August 16, 2019

According to the latest research for Counterpoint’s US Smartphone Tracker Q2 2019, US sell through declined 1.5% year-over-year. The US premium market softened with holding periods continuing to increase. Upgrade rates in the Big 4 carriers averaged only 4.5%. The longer holding periods are especially significant within the high price tiers.

The OEMs who gained year-over-year were opportunistic in the low-price tiers or who were opportunistic gaining share with cost conscious consumers. Alcatel, Motorola and Coolpad saw growth in the low-price tiers. OnePlus and Google stole some of the flagship volumes which went to LG and Samsung in the past with devices priced $200 or more under the Korean flagships. Look for carriers to continue to offer more products such as the Google Pixel 3a and OnePlus 7 Pro.

Source: Counterpoint Research – Smartphone Channel Share Tracker Q2 2019

Speaking about the competitive landscape, Research Analyst Maurice Klaehne stated, “Postpaid smartphone sales were weak in Q2. All carriers saw activations fall year-on-year. Smartphone sales have been in a decline for several quarters now as longer holding periods and bring-your-own-devices (BYOD) are affecting sales. We are seeing a shift away from premium devices as Apple showed a YoY increase through the continued success of the XR as its top seller. The iPhone 8 and iPhone 7 have also picked up sales this quarter, with some prepaid channels beginning the transition from the iPhone 6s to the iPhone 7 as the main iOS workhorse.”

Source: Counterpoint Research – Smartphone Channel Share Tracker Q2 2019

Further commenting on the OEMs, Research Director Jeff Fieldhack added, “Samsung declined as Galaxy S10 sales began to waver in Q2. Samsung had a solid launch of the Galaxy S10 series but is now seeing signs of weakness. The S10e had underperformed from the beginning and sales of the S10 Plus and S10 have decelerated. Consumers are holding on to their older devices longer in anticipation of more 5G options coming out second half of 2019 and 2020. OnePlus, Alcatel, and Coolpad showed strong growth YoY. OnePlus launched the 7 Pro at T-Mobile. Alcatel continues to sell high volumes of the TCL LX in TracFone channels. It also gained another channel as it launched the Avalon V in Verizon. Coolpad made gains in Metro by T-Mobile with its Coolpad Legacy prepaid smartphone.”

Source: Counterpoint Research – Smartphone Channel Share Tracker Q2 2019

Speaking about display trends, Klaehne commented, “Volumes of six inch and higher displays reached a record 43% share of smartphone sales in Q2 2019. Most Apple and Samsung flagships now come with 6” displays and prepaid devices like the LG Stylo 4 and Motorola G7 series help boost mid and low-end sales. The newly announced Galaxy Note 10 smartphones align with this trend and will continue pushing large display smartphones in the months to come. Samsung also announced it will be ready for a relaunch in September for the Galaxy Fold. The Fold has a 7.3” unfolded display which is unprecedented for a smartphone display size. Samsung has stated it made improvements to the durability of the display and hinge. However, T-Mobile has backed out of selling the product signaling that some carriers are still hesitant about the form factor.”

This is an excerpt from our smartphone channel share tracker service across different geographies providing highly detailed insights and analysis – answering the why, backed by a solid granular sales database mapped across different channels – offline and online. For follow-up questions, email info@counterpointresearch.com.

You can also visit our Data Section (updated quarterly) to view smartphone market share Globally and from the USA, China and India

Realme becomes a Top 5 smartphone brand.

Refreshed A series helps Samsung retain top spot.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –

Aug 7^th, 2019

Smartphone sales in Indonesia grew 6% year-on-year (YoY) during Q2 2019 driven by the promotions during the festive season of Ramadan both in the online and offline segment, according to the latest research from Counterpoint’s Market Monitor service.

Commenting on the results, Research Analyst, Parv Sharma, said, “Chinese brands are the reason for the growth of the smartphone market in Indonesia. Four out of the top five brands are now Chinese. Their combined market share is more than 55%. Realme, launched in Q4 2018, showed impressive growth with an aggressive pricing strategy. In three quarters, it has captured an 8% market share, thereby becoming the number five brand by volume. Realme’s leaner portfolio with aggressive online focus and value for money proposition has helped it gain market share. However, it is also looking to expand in the offline segment to grow further.”

On the distribution landscape, Associate Director, Tarun Pathak said, “Samsung continues to lead the smartphone market with a 27% share. The Refreshed A series has driven sales for the brand with key models like Galaxy A50 and A10. Further, the strong offline presence has helped it maintain a dominant position in the market. Local brands are continuously losing share to global and Chinese brands. This has led to the market being concentrated at the top with the top five brands now capturing 82% of the market. Advan was the only local smartphone brand in the top 10 list by market share, coming in at the seventh position.”

Exhibit 1: Indonesia Smartphone Sales Market Share – Q2 2019

Source: Counterpoint Research Market Pulse Q2 2019

Market Summary:

Xiaomi grew at 18% YoY driven by the Redmi 6A and Redmi 7 series. It is expanding its retail strategy with strong offline presence and official stores on portals of online partners like Lazada, Blibli, Shoppee, etc.
OPPO A5s, A3s were the best-selling models and grew at 6% YoY. OPPO has a leaner portfolio and is diversifying with the Reno series aimed at the high-to-mid segments.
Vivo grew at a healthy rate of 50% YoY, holding on to the fourth position in the market. Vivo is launching similar models that it has launched in China but with lower-end specs to keep the competitive price in the market.
Asus is another global brand that registered YoY growth but was pushed down to the sixth position by Realme. Asus Max, Max Pro is performing well in the market.
Advan, Nokia HMD, and Huawei also maintained their position among the top ten smartphone brands.

The comprehensive and in-depth Q2 2019 Market Pulse is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our latest research or insights. The Counterpoint Market Pulse is based on sell-through estimates based on retail surveys, vendor polling triangulated supply chain checks and secondary research.

Analyst Contacts:

Tarun Pathak