Supply chain
China smartphone shipments to contract in 3Q20, says Digitimes Research
Sean Lin, DIGITIMES Research, Taipei

Smartphone shipments to the China market are expected to decline both sequentially and annually in the third quarter of 2020, after experiencing a robust on-quarter growth in the previous quarter, according to Digitimes Research.

Smartphones sales in China surged 104.6% sequentially in the second quarter thanks to the easing of the coronavirus impacts, economic stimulus measures and the launch of new hanset models, Digitimes Research has found.

Second-quarter smartphone shipments in China also represented a mild 1.4% growth from a year earlier.

Huawei, Vivo, Oppo, Xiaomi and Apple were the top-five handset vendors in China in the second quarter, with their combined market share reaching 98.1%, up 1.4pp from a quarter earlier.

As the current strength of components pull-ins by Chinese handset brands is not as strong as expected for the third-quarter traditional peak season and the effects of some stimulus measures are beginning to wane, smartphones shipments in China are expected to contract 7.9% on year in the third quarter, Digitimes Research estimates.

But shipments from Huawei are expected to remain robust in the third quarter, allowing the vendor to eventually take up a nearly 50% market share in the third quarter.

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