Survey: 60% in Spain to Cut Budget for Next Smartphone

45% of the respondents will cut down their budget for the next smartphone by more than 10%.

Nearly 60% of the respondents will wait longer than usual for the next smartphone purchase.

Smartphone manufacturer origin does not hold significance for nearly 70% of the respondents.


San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – September 21, 2020

In Spain, the concern over COVID-19 has pushed people to cut their budget for the next smartphone, according to the latest Consumer Lens study conducted by Counterpoint Research, which also finds that many have been forced to put on hold their next smartphone purchase. However, the origin of the smartphone is not much of a concern when making the purchase decision.

In the survey, 60% of the respondents said they would cut their budget for the next smartphone purchase. Out of these, 73% will cut their budget by more than 10%. In terms of the price bracket for future smartphone purchases, 49% of the respondents with a budget of $271 or above plan to slash it by more than 10%. This pattern is similar across genders. Nearly 70% of the respondents from the 25-34 age bracket plan to cut their next smartphone purchase budget, which is the highest proportion among all age groups.

Commenting on this trend, Counterpoint Research Associate Arushi Chawla said, “The unforeseen longer stay of COVID-19 has impacted the spending behavior of respondents in many ways. Spending on smartphones, which takes a prominent place in people’s lives, has also been impacted. The pandemic has created uncertainty over future income, making people spend mainly on essential goods. This has not only forced people to cut their next smartphone purchase budget but also pushed them to put off their plan for the next purchase.”

Chawla added, “Nearly 60% of the respondents in Spain will be postponing their plan for the next smartphone purchase due to COVID-19. Female respondents are more concerned about the ongoing pandemic than men. This makes them the dominant category when it comes to putting plans for the next smartphone purchase on hold. This also means more females opting for a contactless mode as their next smartphone purchase location.”

Impact of COVID-19 on Smartphone Purchase Intentions

Counterpoint Research-Impact of COVID-19 on Smartphone Purchase Intentions..

Source: Consumer Lens, Counterpoint Research

Coming to the awareness of smartphone manufacturing location against the COVID-19 backdrop, the survey reveals:

  • Barely a quarter of the respondents are aware of the smartphone manufacturing location in detail.
  • The origin of the smartphone manufacturer does not hold much significance for the majority of respondents.
  • Half of the respondents will remain indifferent if they come to know that the smartphone is manufactured in China.

Commenting on the issue, Counterpoint Research Senior Analyst Pavel Naiya said, “Men have more awareness about smartphone manufacturing origin than women. However, females dominate when it comes to those respondents who are unaware of the location but would like to know it in the future. COVID-19 has forced people in Spain to change their smartphone purchase preferences in terms of time and budget, but not in terms of manufacturing origin.”

Naiya added, “Apple, Samsung, Huawei, and Xiaomi are the top brands in Spain. Battery, price, and internal memory are the key features that respondents look up when making a smartphone purchase.”

If you are interested in a detailed analysis of smartphone consumer behavior, it is available for the subscribers on our research portal.


The Consumer Lens survey was conducted among smartphone users in seven countries during May-June 2020. The consumer opinions are drawn from a heterogeneous group in terms of age, monthly income, gender, and occupation. Data points abided with all the logical checks throughout the analysis section and gave a better representation of the ongoing smartphone trends and future purchase intentions.


Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects, and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Pavel Naiya

Arushi Chawla

Feel free to contact us at press(at) for further questions regarding our latest in-depth research and insights, or press enquiries.

Related Posts

Podcast: COVID-19 To Impact Consumer Smartphone Spending by More Than 30%

It’s been a little over six months since the COVID-19 outbreak started, and a lot of things have changed. To control the spread of the coronavirus, lockdowns have been imposed in several countries like the US, UK, India, and more. The lockdown may have helped in slowing down the virus spread, but it has severely impacted economic activities across the globe. At Counterpoint, we recently conducted our Consumer Lens Study to understand the changing consumer intention and attitudes during the pandemic.

Due to the coronavirus outbreak, a lot of people have lost jobs across different countries. This has affected their future income uncertainty. As a result, consumer buying behavior will strictly be limited to only the essentials. This also means there could be a reduction in their budget. Our Consumer Lens Study aimed to find out if consumers intent to cut their budget for the next smartphone purchase. Also, with social distancing norms in place, we wanted to find out if consumers will be looking for ‘low touch’ sales channels. For companies in the smartphone value chain, our latest podcast episode will help in understanding the consumer demand dynamics and calibrate strategies accordingly in these testing times.

Spending Intention on Purchasing of Smartphone

In the latest episode, “The Counterpoint Podcast” host Peter Richardson discusses the impact of COVID-19 on the consumer spending pattern with senior analyst Pavel Naiya and associate Arushi Chawla. In the podcast episode, Arushi talks about smartphone markets in which we conducted the study and the key findings. Pavel, on the other hand, sheds light on consumer sentiments over buying smartphones from Chinese companies. He also talks about how smartphone makers are coping up with the demand when consumers cannot go to the store and buy smartphones.

Hit the play button to listen to the podcast

Also available for listening/download on:


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LATAM Smartphone Market Felt the Full Impact of COVID-19 in Q1 2020

Q1 2020 smartphone shipment in the LATAM market declined 20.8% YoY.

Xiaomi shipment grew more than 203%.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – June 2nd, 2020


In the first quarter of 2020, the Latin American smartphone market declined 20.8% YoY and 30.1% from Q4 2019, according to the latest research from Counterpoint’s Market Monitor service. The first quarter in LATAM is typically slow due to the summer recess in the Southern hemisphere. But this year, it was also impacted by COVID-19. The drastic drop in the shipment of smartphones exposes the relatively low penetration of online sales in the region.

Commenting on the market’s development, Counterpoint Research Senior Analyst, Tina Lu, said: “As this year’s Chinese New Year took place before the end of January, and factories in China were scheduled to remain closed for part of February, many brands built enough inventory to last until March. So, despite the COVID-19 measures preventing factories from reopening, sales channels, in most LATAM countries, were not affected by the lack of supply. Brazil and Argentina were the only two countries that suffered due to component supply issues from China”.

Tina added: “From the consumer side, COVID-19 hit the region only during March, when most LATAM countries started to lockdown. The degree of lockdown varied among countries. Argentina, Colombia, Ecuador, and Peru had complete lockdowns for the first few weeks, with everything closed except food stores, groceries, pharmacies, and pet stores. Products sold online were not allowed to be delivered unless deemed essential”.

Exhibit 1: Smartphone Shipment Decline by Region & Country, Q1 2019 vs Q1 2020

Source: Counterpoint Research Market Monitor Q1 2020

Commenting on the brands’ performance, Parv Sharma, Research Analyst, highlighted: “Another effect from the regional shutdown was the increase in brand concentration. The top 5 brands represented 76.3% share of the smartphone market, 3.3 percentage points higher than the same quarter last year. Xiaomi was the only brand that increased its volume during Q1 2020. Samsung dropped in volume but managed to increase its share. The vendor’s production pivot to Vietnam reduced China supply chain exposure, positioning it well among more China-dependent competitors”.


Exhibit 2: Smartphone Shipment Market Share 2020 Q1

Source: Counterpoint Research Market Monitor Q1 2020


Key Takeaways

  • Samsung was once again the absolute leader in the region. The COVID-19 crisis benefited it by increasing its share and widening the gap to its closest competitor.
  • Motorola’s shipment decreased by more than -26% compared to the same period last year. Motorola has manufacturing sites in Wuhan, which impacted the brand’s supply chain during most of February and part of March.
  • Despite the drop in shipment volume for Motorola, most of LATAM market sales channels did not experience a lack of inventory from the brand, during the quarter.
  • Huawei share and volume was also impacted, but not so much by the COVID-19 crisis. Instead, it was hit by the US trade ban. Mexico and Chile remain Huawei’s biggest markets, representing more than 60% of its regional volume. However, it has been steadily losing steam in Colombia.
  • Xiaomi more than tripled its volume YoY. It has started to get aggressive in Brazil, in which it has already opened two stores this year in Sao Paulo. It is also negotiating to start local manufacturing.
  • LG continues to decline YoY in the region. Brazil and Argentina remain the only markets in which it manages to hold market share.
  • Apple grew in volume and share compared to the same period last year. iPhone 11 is driving the growth of Apple in the region.
  • Other brands also saw steep decreases, with many at around half the volume from a year ago. This included not only ‘local kings’ but also small Chinese brands, which were all impacted by handset supply issues.
  • The feature phone market only declined by 0.3%. It has proven to be more resilient than the smartphone market.


The comprehensive and in-depth Q1 2020 Market Monitor is available for subscribing clients. Please feel free to contact us at for further questions regarding our latest in-depth research, insights or for other press enquiries.

The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.


Analyst Contacts:

Tina Lu

+54 91160411221

Parv Sharma

+91 974-259-6030

Peter Richardson

+44 791-723-1934


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Global Smartphone Shipments Plummet Below 300Mn

The global smartphone market declined the fastest ever, -13% YoY, during the quarter
5G smartphone shipment share increased to 8% in Q1 2020 from 1% in Q4 2019
Xiaomi (7%) YoY, and realme (157% YoY) were the only major brands to achieve growth
Apple remained resilient even during the COVID-19 as iPhone shipments declined only 5% YoY Q1 2020

New Delhi, Mumbai, Hong Kong, Seoul, San Diego, London, Buenos Aires – April 30th, 2020

The global smartphone market declined its fastest ever, down 13% YoY in Q1 2020, according to the latest research from Counterpoint’s Market Monitor service. This is the first time since Q1 2014, that the smartphone market has fallen below 300Mn units in a quarter. The COVID-19 pandemic has disrupted the signs of any recovery that the market started showing in Q4 2019.

The first quarter decline was mainly driven by a 27% YoY shipment decline in China, the initial epicenter of the pandemic. Some of the decline was offset by sales shifting to online channels. Overall, the market share of China in the global smartphone market, in Q1 2020 reduced to 22% from 26% a year ago.  The disruption in China also impacted the supply side of handsets and components for some OEMs, which in turn, affected global shipments. In the long run, this could lead to OEMs diversifying their supply chain across regions. This could be a silver lining for countries like India and Vietnam.

By the end of the quarter, as COVID-19 started to spread to other regions, and lockdowns of varying severity were imposed, the pendulum of disruption started to swing from supply to demand.

Commenting on the impact of COVID 19 on smartphone demand, Tarun Pathak, Associate Director at Counterpoint Research noted, “From the consumer standpoint, unless replacing a broken phone, smartphones are mostly a discretionary purchase. Consumers, under these uncertain times, are likely to withhold making many significant discretionary purchases. This means the replacement cycles are likely to become longer. Lockdowns in most parts of the world will be lifted in a staggered way, which will mean it could take time before the retail activity completely resumes. Even after the lockdown ends, there will likely be changes consumer spending patterns. Online channels are likely to be preferred and there will likely be shifts in the price band distribution with some consumers opting for a cheaper device, which could lead to a decrease in overall ASPs. OEMs will have to embrace a more omnichannel strategy. Retailers will also have to find ways to reach their consumers digitally. This could increase the adoption of O2O channels and hyper-local delivery services in smartphones. However, users staying at home are engaging on their smartphone more than ever. This provides opportunities for services like mobile gaming and OTT services. This will likely lead to operators being able to upsell to larger data packages with higher ARPUs.”


COVID 19 has also impacted the pace of 5G rollouts in some countries. Commenting on this, Varun Mishra, Research Analyst at Counterpoint Research noted, “COVID-19 has disrupted the implementation plans of 5G in some countries, with auctions being postponed in markets like Spain and India. However, led by Huawei, the growth of 5G in China remains as expected. As the situation returns to normal, the 5G sales will be further driven by OEMs including Samsung, Oppo, Vivo, Xiaomi and realme launching devices in the sub $300 price band. This is likely to be complemented by SoC players launching cheaper 5G-capable chipsets. The share of 5G smartphones increased to 8% in Q1 2020, compared to 1% in Q4 2019. 5G is likely to help rate of recovery during the second half of 2020.”

The combined market share of the top 10 brands has increased to 83%, from 80% in Q1 2019. The consolidation trend is likely to continue, as smaller brands, with a higher offline distribution, are likely to be affected more by the pandemic. As expected, due to the pandemic, all the major OEMs declined during the quarter, except Xioami (7% YoY) and realme (157% YoY). This is partly because, India, which is the largest market for both these brands, implemented a severe lockdown in the last week of March.

Exhibit: Smartphone Shipment Market Share Q1 2019 and Q1 2020

Counterpoint Smartphone Shipment Market Share Q1 2019 and Q1 2020

Source: Counterpoint Research: Quarterly Market Monitor Q1 2020


The ongoing effect of the pandemic on the smartphone market is likely to be worse in the second quarter. The impact on the OEMs will depend on the markets, channels, and price bands they operate in with some OEMs affected more than others.

  • Market Exposure:
    • Demand Side: The China market is recovering, while the many other major markets are under lockdown. Depending on the severity of the pandemic, the recovery in some of these markets could also take longer. Going forward, brands with a larger share in China, like Huawei, are in a better position than brands like Samsung, for which almost all its major markets remain under lockdown.
    • Supply Side: In Q1 2020, OEMs with components and factories in the worst hit areas of China were exposed the most, for example, Lenovo. In the second quarter, the trend will be reversed, as China’s manufacturing recovers, but many other manufacturing centers are closed.
  • Sales Channel: The brands with higher online presence are likely to remain more immune than offline ones. Some offline demand is shifting to online.
  • Price Band Exposure:
    • The entry level segment is likely to hit the most, especially in the emerging economies, driven by impact on the people’s income in the unorganized labor sector and higher offline purchase tendency. The mid segment will continue to drive volumes.
    • The premium segment is least likely to be directly affected by the economic meltdown. As the consumers would adjust to the new normal, the sales in the segment are likely to rebound.

Key Takeaways:

  • Samsung led the smartphone market during the quarter capturing one-fifth of the global smartphone shipments. The OEM declined 18% YoY during the quarter and is expected to see a steeper decline in Q2 2020.
  • Huawei continued its push in China and surpassed Apple again during the quarter. The OEM declined 17% YoY during the quarter. Over half of the smartphone shipments for Huawei are now in China.
  • Apple remained resilient even during the COVID-19 as iPhone shipments declined only 5% YoY during the quarter. The iPhone revenues were down 7% YoY for the same period. The impact on some European and Asian countries was mild.
  • Xiaomi grew 7% YoY during the quarter. The OEM continued to lead the India smartphone market reaching its highest ever market share (30%) since Q1 2018.
  • Compared to other major OEMs, Vivo declined less (10% YoY) during the quarter. A strong performance in the Indian Smartphone Market partially offset declines in other markets.

Analyst Contacts:

 Tarun Pathak


Shobhit Srivastava


 Varun Mishra


Abhilash Kumar


Follow Counterpoint Research

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