Gadgets like Smartphones, tablets are the need of the hour particularly when users are still studying and working from home. However, the global smartphone market faced a decline due to COVID-19 problems when compared to 2019. It will likely revive only by 2022. Accordingly, a recent report by Counterpoint indicates that the wholesale Average Selling Price(ASP) of the global smartphone market increased by 10% despite a decline in shipments.

As per the report, regions like APAC, China, Europe, MEA, North America contributed to the overall 10% YoY increase in ASP in Q2 2020. However, Latin America is the only country where ASP decreased YoY by 5%. Although COVID had an impact on the overall market, the premium segment didn’t slope down aggressively. It faced only an 8% decline YoY compared to the overall market decline. That said, the reason for this less economic impact on premium smartphone users.

Editor’s Pick: Counterpoint data shows Apple is still king of premium phones and North America remains a goldmine

Accordingly, Counterpoint says that Apple gained the most with a 3% YoY increase in shipments and 2% YoY in iPhone revenue. Also, the 5G shipments added to the growth of ASP. Overall shipments of 5G devices as of Q2 are 10% of the total but it takes 20% of revenue. This is because many 5G phones in Q2 like the OnePlus 8 series, Samsung’s S & A series in the premium segment sold well. An increase in demand for education, work, gaming, entertainment is also said to be a factor for users’ liking towards premium phones.

Of all, China is the largest contributor of 5G. 72% of the shipments are from China most of which is contributed by Huawei. Consequently, it takes the top spot with about a 13% YoY increase of ASP as of Q2 2020. In spite of hurdles like the US sanctions, China showed a great potential because it recovered quickly from COVID-19 when others are still facing the heat.

However, budget devices performed sluggish due to extension of lockdown, closure of offline stores, less attraction, and caution among low-middle class people. To sum up, the demand for premium phones with contributions from 5G increased the overall ASP of the global market. That said, the report says global shipments revenue shares for Q2 2020 are split between Apple, Samsung, Huawei, Vivo, Oppo. And they captured 34%, 17%, 20%, 7% ,6% ,16% respectively.

Up Next: Indian Smartphone Market sees a massive decline of 50.6% YoY in Q2 2020, expected to recover in H2

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Yesterday, Xiaomi released its unaudited financial report for H1 2020. According to it, the Chinese company generated RMB103.24 billion in revenue with 7.9% YoY growth. Further, Its gross profit was approximately RMB15.26 billion, whereas profit for the period was approximately RMB6.65 billion. As per the company. both of them increased 22.3% YoY and 29.3% YoY beating market consensus.  What’s interesting is the firm managed to achieve this feat despite COVID-19 global pandemic.

Apart from making a profit in the period, Xiaomi once again made the Fortune Global 500 list in the same duration. Last year, the firm ranked 468 and was the youngest company on the list. This year, its ranking improved by 46 places; thus came 422nd.

The company revealed in an official press release that it generated RMB61.952 billion and RMB31.628 billion from smartphone sales in the first and second quarters of 2020 respectively. As a whole, it shipped a total of 28.3 million smartphones in H1 2020.

According to Canalys, Xiaomi even ranked as the world’s 4th largest smartphone brand with a market share of 10.1% in Q2 2020. Due to the increase in sales (99.2% YoY) of devices priced €300 and above, the company’s average selling price (ASP) increased to an all-time high of 1116.3 yuan ($162) by 11.8% YoY and 7.5% QoQ respectively.

The firm’s revenues from international markets were RMB48.861 billion and RMB24.029 billion for the first half and the second quarter of 2020 respectively. In Q2, it ranked among the top 5 in 50 markets and top 3 in 25 of these countries/regions.

UP NEXT: Xiaomi sees marginal growth in India despite production restrictions

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Though Samsung was overtaken by Huawei globally in the month of April, the company witnessed its highest average selling price (ASP) in 6 years in Q1 2020 according to Strategy Analytics.

Samsung’s ASP was $292 from January to March, an 8.5% YoY increase and 20.7% more than Q4 2020. This is indeed a great achievement by the South Korean tech giant despite the global pandemic.

Last time the company’s ASP was around this value ($297) was in Q2 2014, almost 6 years back. Though the new steep ASP is $5 less than the previous one,  it is yet much better than the other quarters.

In previous years like 2017, 2018, and 2019, Samsung’s average selling price was $243, $251, and $247 respectively.

The huge increment in Q1 2020 was due to the demand for expensive flagships like the Galaxy S20 series and Galaxy Z Flip clamshell foldable smartphone. Samsung’s revenue surged 22.1% in this period from 21.7% last year and 14.4% from the previous quarter (Q4 2019).

For comparison, Apple had the highest revenue of 37.5% at the same time. Samsung is expected to launch Galaxy Fold 2, a cheaper Galaxy Fold, and Galaxy Note 20 series in the second half of this year. If the demand for high-end devices stay constant or increase, the company’s ASP could further improve.

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(Via)

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