Counterpoint’s report on the smartphone market in the last quarter and the whole year of 2019

Counterpoint’s report on the smartphone market in the last quarter and the whole year of 2019

Counterpoint’s report on the smartphone market in the last quarter and the whole year of 2019

News unit : Counterpoint Research Institute on Thursday, January 30, 2020 (10 February 2018) with publishing a report on the institute’s main website announced the results of its review of the state of the global smartphone market in the fourth quarter of 2019 as well as the entire year of 2019. According to this report, during the fourth quarter of 2019, a figure equal to 408 million smartphone devices entered the market, which compared to the volume of smartphone supply in the same period of the previous year (394.5 million devices), has grown by three percent. But the global market in 2019 has decreased by one percent compared to 2018, because the amount of smartphone supply has decreased from 1505.3 million units in 2018 to 1486.1 million units in 2019.

Apple iPhone 11

This is the first time that the global smartphone market faces a decline for the second consecutive year. Of course, this 1 percent drop in comparison with the 4 percent drop in 2018 shows an improvement in conditions. 2019, along with the introduction of innovations such as 5G and folding screens, also brought with it unfavorable commercial and political conditions. According to Counterpoint research analyst Varun Mishra, growing tensions between several countries have affected the smartphone market. For example, the US pressure on Huawei as well as trade tensions between Japan and Korea, which created uncertainties in the memory chip market.

Disruption in supply chains caused many companies to reconsider their strategies and reduce their dependence on one market. Most likely, in 2020, we will see efforts to diversify investments in different regions in order to partially reduce the severity of risks in the market. Currently, the outbreak of the corona virus in China is the latest issue that threatens supply chains.

Global market share of smartphone supply in the whole year 2019 compared to 2018

As usual, Samsung succeeded in 2019 by releasing 296.5 million smartphones, occupying 20% ​​of the global market and becoming the largest smartphone supplier in the world. to be nicknamed Samsung’s smartphone shipments in 2019 showed a 2% growth compared to the previous year. Of course, the performance of this company in the last quarter of 2019 was almost unchanged compared to the same period last year. During the last season, Samsung introduced 70 million smartphones to the market, which is not a significant jump compared to the statistics related to the release in the fourth quarter of 2018 (i.e. 69.8 million devices). It should be noted that Samsung is one of the pioneers in the field of 5G and in 2019, it has released more than 6.5 million 5G smartphones to the market.
Samsung position in a few years Recently, it has always remained constant and this Korean company is the first in terms of the volume of smartphones in the world. But Huawei is closing the gap with Samsung every year. Despite the US sanctions against Huawei, this Chinese company shipped 238.5 million smartphones last year, surpassing Apple became the second power of the market. This is the result of Huawei’s comprehensive focus on the Chinese market, so that more than 60% of all smartphones of this company were released in China in 2019, and in this way, almost 40% of the market share was given to Huawei.

Huawei is trying to Continue to sell your older devices outside of China. But with increasing competition from other brands, Huawei’s value proposition is gradually weakening. Needless to say, according to Huawei ban by Google and subsequently the company’s attempt to develop its native operating system and abandon Android, it is unlikely that Huawei will be able to compete outside of China with Android phones compete. According to some experts, the US sanctions against Huawei are still relatively new and the effects of this move may haunt the company for several years. However, if Huawei wants to move forward with the same speed Road will leave behind Samsung in the not too distant future. Of course, this will require fending off future US attacks and continuing to gain market share outside of China.

Although Apple in total year 2019 ranked third in terms of smartphone sales, but in the fourth quarter of 2019, this American company managed to regain the first place in smartphone sales in one season after two years. The supply of Apple iPhones in the last quarter of 2019 (without any of these iPhones equipped with 5G communication), reached 72.9 million units with an annual growth of 11%. Undoubtedly, this is as a result of the very good sales of the iPhone 11 series and especially iPhone 11, which, according to Counterpoint experts, thanks to the presence of a dual camera and a lower price than iPhone XR has appeared beyond expectations.

Global smartphone market share in Q4 2019 compared to Q4 2018

Since September 2018, this is the first time that quarterly revenue from iPhone sales has , compared to the same period last year, it increases. Even according to the Institute of Strategy Analytics, the best performance of Apple in terms of The growth since 2015 has been reached in the last quarter of 2019. Despite the fact that in terms of the amount of supply in 2019, Apple is behind Samsung and Huawei, but in terms of profitability, no company can reach Apple. Not bad to know, according to Counterpoint report on the profit of the global mobile market in 2019, about 66% of the profit of the smartphone industry worldwide belongs to Apple and Samsung’s share of the global profit is only 17%.

realme (sub-brand Oppo) It does not have a place among the top 5 brands in the world, but this Chinese brand managed to achieve the fastest growth among all brands in the world by achieving an annual growth of 163% in the last quarter of 2019 and achieving an annual growth of 453% in the whole of 2019. Needless to say, in 2019, the realme brand was able to be among the top 5 brands in the Indian market, which has had a significant impact on its strong growth. Among other brands that grew rapidly in the last quarter of 2019, we can refer to Xiaomi (with an annual growth of 28 percent). It is interesting to know that in the past year, Xiaomi was the largest supplier of smartphones in the Indian market.

In 2019, we saw that different brands changed their strategies to gain more share of the global market. For example, Samsung by changing the structure in A series phones , breathed a new spirit into the body of its mid-range smartphones. It was the iPhone 11, which, despite being equipped with multiple cameras, had a lower price than its predecessor. At the same time, Apple has also increased its focus on services, with services revenue growing 17 percent year-over-year in the most recent quarter and setting records in many areas — including music, the cloud, and Apple Care. In 2019, Chinese companies were able to expand their influence to new markets (especially Europe). The fifth generation technology provided the opportunity for manufacturing companies to introduce themselves to users better and make their names known by releasing the first 5G-equipped devices (in markets that had prepared the infrastructure earlier than others).

Another noteworthy point in 2019 is that smartphone manufacturers introduced numerous innovations to the industry this year that will become accepted standards in the future. Folding screens, screens with holes (or punch holes), cameras with higher megapixels, increasing the refresh rate of screens, placing sensors under the screen layer, optical zoom and ultra-fast charging are some examples of these innovations. Some of these features quickly made their way to all price categories, and thus users had the opportunity to buy powerful phones at reasonable prices.

Abhilash Kumar, research analyst at Counterpoint, says regarding the adoption of 5G communications and the outlook for the market: “2019 will also [bring] the implementation and early adoption of 5G. Visibility, especially in the United States, Europe, China and Korea. The stage is already set for growth in 2020 [as] chipset players, carriers and manufacturers are all aggressively preparing for 2020 and working to drive down 5G prices. The transition from 4G to 5G in developed markets and continued migration from 3G to 4G, feature phones to smartphones and upgrades will drive the smartphone market towards growth in the coming year.”

Increasing competition in the smartphone market gradually leads it to consolidation. In 2019, the world’s top five brands captured a total of 66% of the total market. While this rate was equal to 65% in 2018 and 62% in 2017. Another important point is that in 2019, only one percent of all smartphones released in the world had fifth generation communication. This amount is expected to increase to 18% by the end of 2020.

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