Smartphones continue to sell despite the pandemic in 2020. Consequently, a recent report by IDC reveals that budget and mid-range(below $400) smartphones continue to be the star of the show. And, if the predictions are right, the mid to high-end segment will also see a surge going forward.
A study by IDC (International Data Corporation) shows that smartphones in the low to mid-tier segment ($100-400) dominated worldwide shipments with a 60% market share in Q2 2020. This was evident in price-sensitive markets like Asia (excl. Japan&China), Latin America, MEA (Middle East&Africa), and CEE(Central Europe) where 85% of the market belonged to smartphones under $400. In countries like the USA, the market share of devices under $200 rose to 27% in Q2.
The dominance of Chinese companies under $400
That said, according to the report, companies like Samsung, Huawei, Oppo, Xiaomi, and Vivo are the sole contributors. The reason for this could be the value proposition that their devices bring in every segment. Still, premium brands like Apple also seem to have grabbed a scoop of this. Apple’s iPhone SE had a great reception and as a result, the company sold nearly 10 million units in Q2 2020.
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Nearly 73% of smartphone shipments in 2020 is expected to be dominated by devices under $400. However, IDC says that the overall value of smartphones will decline by 7.9% which is $422.4 billion from $458.5 billion in 2019.
COVID-19 has resulted in unemployment, and add to this, supply disruption and delay in manufacturing during Q2 meant the industry had to adapt to a new normal. Hence, affordable smartphones took the center stage and if reports are true, the shipments are expected to grow further and reach 63% in 2021.
Prospects of the mid-to-high-end segment
The mid-to-high-end devices($400-600) clocked a share of 11.6% in Q2 2020. Nabila Popal, Research Director at IDC says, ” IDC expects the fastest growth will be in $400-600 as 5G sales grow and average price drops to $465 by 2024″.
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