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The smartphone market worldwide is in crisis

AndroidPIT best smartphones3 04 2019
© nextpit

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Market analysts have published initial figures on the development of the smartphone market in the first quarter of 2020. It was the worst quarter in the industry's history.

While Huawei was successful in the Chinese market in the first quarter of 2020, the global situation looks bad for all manufacturers. Market research firm Strategy Analytics released a report on global smartphone sales from January to March 2020, according to which the industry sold 275 million units worldwide, down 17 percent from the same quarter last year (330.4 million units sold).

smartphone markt q1 2020
The figures from market analysts show: only Xiaomi will make it through the start of the year without losses. / © Strategy Analytics

A decline in sales figures: Apple is hit comparatively mildly

Market leader Samsung sold around 58.3 million smartphones worldwide in the first quarter of 2020 - in the first quarter of 2019, 71.8 million units were sold. A decline of 19 percent and Samsung's lowest sales in eight years, according to market analysts.

Huawei is hit twice as hard globally. In addition to the ongoing dispute in the USA and the resulting compulsory abandonment of Google services, the coronavirus crisis is causing losses. According to the report, Huawei sold around 48.5 million smartphones in the first quarter of 2020, a drop of 18 percent compared to 59.1 million mobile phones sold in the same quarter last year. Despite all this, Huawei is still holding its own in second place in the global manufacturers' battle. The Chinese company holds its 18 percent market share. Not least because of its mammoth share of the Chinese market, which Huawei was able to expand this year.

AndroidPIT huawei p40 pro back np3
Smartphones like the P40 Pro are keeping Huawei alive, at least in China. / © NextPit

Third in the group of the largest smartphone manufacturers is also recording a decline in sales figures. However, Apple is being hit comparatively mildly in percentage terms. While the Californian company sold around 43.1 million iPhones in the first quarter of 2019, the figures are down by nine percent to 39.2 million units sold. At the same time, Apple's market share increases to 14.3 percent instead of 13 percent in the same quarter last year. The percentage points that Samsung, Huawei, and smaller manufacturers are being left behind at the beginning of 2020 and wonderkid Xiaomi now holds ten percent of the market instead of 8.3 percent.

Xiaomi is also doing surprisingly well, the report says. In Q1 2019 and Q1 2020, the manufacturer will sell around 27.5 million smartphones and at least not deteriorate. What the future of the industry looks like is uncertain. To be sure, most manufacturers can now once again rely on the majority of suppliers. However, investments in luxury goods are likely to decline significantly in 2020 and in most markets.

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  • 5
    Bob Drake Jun 10, 2020 Link to comment

    Xiaomi feels better than others

  • Dean L. 34
    Dean L. May 5, 2020 Link to comment

    overpriced, yes. And OnePlus and Motorola are joining that club as well as others. A few years ago some of the manufacturers provided pricing below the mid range price point, not so much anymore. They need to get back to their roots. Just my two pfennig...

    marco sarli

  • Rusty H. 33
    Rusty H. May 5, 2020 Link to comment

    The smartphone market has been overpriced for a long time, given the build costs & marketing. Because the phones have pretty much "peaked" in what you can do with them, given nothing pretty much besides bleeding edge 3D games or benchmarks, show you the difference between last year & this years model, it's time the prices started to come in line with other consumer electronics. The last couple years, they have been trying to make the phone a "work of art" by making it more colorful and stylish. But, the minute people buy them, all that color and stylish garbage goes out the window because they must slap a protective rubber or similar case on them, to protect the glass on the front and the glass on the back.

    Sarkus MarkusDean L.marco sarli

  • Sarkus Markus 4
    Sarkus Markus May 5, 2020 Link to comment

    I don't think many people are willing to pay $1000 - $1500 for a phone at this time. The cell market is in need of a major shakeup. I have a Note 9 (paid off), which is still a powerful phone. There's no need for me to have a Note 20 which will take eons to pay off.

    Dean L.marco sarliRusty H.

  • marco sarli 39
    marco sarli
    • Admin
    May 5, 2020 Link to comment

    Phones should not be luxury goods. Wrong approach and has caused a lot of distortion in the market. About time for a change of direction

    Dean L.Rusty H.Jerry's W.

    • Jerry's W. 20
      Jerry's W. May 5, 2020 Link to comment

      And that blonde USA dictator lied about Huawei phones etc just because these phones became top branch of the market.
      Time for a president, not a liar.

      marco sarli

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