The COVID-19 pandemic has already disrupted the economy and the businesses are struggling to survive. While smartphone brands are not in the struggling stage, they are looking at a massive dip in sales, and thus, revenue.
According to the research by DigiTimes, the Chinese smartphone brands could witness a double-digit decline in the second half of this year. The reason being attributed is that the demand in the local market hasn’t fully recovered yet.
Another reason behind the decline of Chinese smartphone shipment is that the export of shipments has still been restricted in some overseas markets as the COVID-19 pandemic isn’t under control yet.
The report adds that compared to Q1 2020, China’s smartphone shipments grew 43.3 percent to 157 million units in Q2 2020. However, the figures are still down by 15.2 percent when compared to the same period in the previous year.
With exports being limited, smartphone brands in China were forced to focus on the domestic market. As a result, Huawei, OPPO, Vivo, and Xiaomi account for 82.3 percent of China’s smartphone shipments in Q2 2020.
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Although almost smartphone brands witnessed a decline in shipments compared to the previous year, Huawei is the only company to register a 2.1 percent growth in the second quarter. Xiaomi, on the other hand, saw a massive 27.1 percent decline because of the setback in overseas shipments.
To boost smartphone sales, companies are now looking to bring it new technologies at an affordable price point, including 5G, super-fast charging, among others. Despite that, the companies won’t see much growth because of the sluggish market.
It’s not just the Chinese market that is facing the issue. India, which is the world’s second-largest smartphone market, witnessed a 48 percent year-on-year decline in the second quarter of this year.
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