Huawei takes 54% share of global 5G smartphone shipments in Q2 2020
On the market for five quarters, 5G smartphones continue to gain traction in the market. In Q2 2020, 5G smartphone shipments reached 40.8 million units, good for a 14.4% share of global smartphone shipments in the quarter. Even though the global smartphone marketed is impacted by the global COVID-19 pandemic, causing shipments to decline 16.4% year-over-year in Q1 2020 and 15.7% YoY in Q2 2020, 5G continues to be a key hardware enhancement for a growing number of devices and smartphone price points.
Chinese OEMs dominate 5G shipments in Q2
Huawei leads global 5G smartphone shipments for the third consecutive quarter. In Q2 2020, Huawei shipped 21.9 million 5G smartphones, or 53.7% of all 5G smartphone shipments during this time. Huawei’s Nova 7 SE is the biggest volume driver, shipping 2.7 million units. The Huawei P40 is the second biggest contributor, shipping 2.6 million units in the quarter.
39% of Huawei’s Q2 smartphone shipments were 5G-enabled devices. vivo is the second biggest 5G brand, shipping 5.4 million units 5G smartphones, or 13.3% share. Vivo S6 5G shipped 1.5 million units in Q2 – most units for an individual vivo model. OPPO and Xiaomi are in third and fifth position, shipping 4.7 million units and 3.4 million units, respectively. Samsung shipped 3.8 million units, good enough for fourth position. Chinese OEMs accounted for 89% of all 5G smartphone shipments in Q2 2020.
China is the biggest 5G smartphone market
The Chinese smartphone market recovered quickly from the most drastic impacts of the pandemic outbreak, but could not prevent a YoY decline. Meanwhile, 5G smartphones made up 40% of Q2 smartphone shipments, around 35.1 million units out of the 87.7 million total units in China. China is the single biggest 5G smartphone market in Q2, accounting for 86% of all 5G smartphones in Q2. The largest Chinese OEMs drive traction in China. Their 5G smartphones are mostly shipped in the domestic market. The Chinese OEMs want to maintain the market position as the market transitions from 4G to 5G. All of them are adopting aggressive price strategies to seize market share.
In Q2, 18.2 million of the 5G smartphones shipped cost less than $400. This price segment accounts for 45% of the total 5G market. All of the handsets in the price segment come from Chinese brands. The price segment between $401 and $600 accounted for 12.5 million units, or 31% of 5G shipments. 96% of devices in the $400-$601 price tier came from Chinese OEMs. Chinese OEMs continue to push 5G smartphone prices lower, already hitting the $200 mark. 5G handsets costing around $150 will reach the market later this year.
5G market leadership will rearrange at the end of the year
Apple has been absent from the 5G rollout so far. However, the latest generation of iPhones, scheduled for launch later in Q4 are all rumored to support 5G connectivity. Some models are likely to support both flavors of 5G, sub6 and mmWave. Historically, calendar Q4 is the biggest quarter for iPhone shipments. Omdia expects iPhone shipments to be above 70 million units in Q4 with over 70% of those shipments coming from newly launched models. As a result, Apple will ship around 50 million 5G-enabled smartphones this year.
Additionally, Huawei’s intensifying supply restraint situation is likely to affect the company’s ability to sustain its 2019 and early-2020 momentum. At the same time, Samsung is working on expanding the reach of its 5G device portfolio beyond flagship devices and more expensive, 5G-enabled, versions of mid-range A-series devices.
Beyond 2020, most OEMs will benefit from Qualcomm’s announced support for 5G on 4xx series Snapdragon chips. Qualcomm will now be able to support 5G on smartphones ranging from flagships to well into the lower price points in the mid-range segment. All of these factors will make 5G connectivity a stable for new smartphones in most price segments by next year.