Smartphone sales dipped slightly in 2019 for the second consecutive year, and now coronavirus fears and lingering trade tensions are creating some uncertainty about whether an expected 5G-led rebound will gain traction in 2020.
Two industry research firms — Strategy Analytics and Counterpoint Research — recently released smartphone global market share studies for the fourth quarter and calendar 2019.
Full-year shipments came in at 1.41 billion devices, down 1 percent from 2018, according to both firms.
That’s an improvement over the 4 percent decline in smartphone shipments the prior year, according to Counterpoint Research. New features such as higher megapixel cameras, foldable displays, in-display sensors and super-fast charging contributed to sales stabilizing in 2019.
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In the fourth quarter, overall smartphone sales were flat compared with the prior year. But Apple’s iPhone shipments gained 11 percent in the quarter compared with a year earlier.
Apple’s surge stemmed in part from a better camera and improved battery life for the recently released iPhone 11. But the $700 price tag also played a role. Apple is charging less for the iPhone 11 than it did for the iPhone 10, which cost roughly $1,000 when it rolled out in 2018.
Strategy Analytics predicts the coronavirus outbreak could result in plunging consumer spending in China in the first half of 2020. The global smartphone supply chain also could be impacted. Seventy percent of all smartphones are made in China.
“Worldwide smartphone demand remains mixed for now, with sharp declines in China balanced by strong growth across India and Africa,” said Linda Sui, a director at Strategy Analytics. “Looking ahead, U.S. trade wars and the China coronavirus scare will be among the barriers to growth for smartphones in 2020.”
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Samsung was the top smartphone seller last year with 20 percent market share, followed by Huawei at 16 percent and Apple at 13 percent, according to Counterpoint. Chinese brands Xiaomi, Oppo and Vivo rounded out the top five smartphone sellers.
New, faster 5G networks have been expected to boost smartphone demand later this year, though that’s less certain now with the virus outbreak.
Last year, about 19 million 5G smartphone were sold globally, which was higher than expected for the nascent technology, according to Strategy Analytics.
Fierce competition in China and heavy subsidies from wireless operators in South Korea drove demand for 5G smartphones in 2019. This year, the continued roll-out of 5G networks in the U.S., Japan and elsewhere is expected to boost momentum for 5G device sales.
With the mobile industry “working on bringing the prices of 5G down, the foundation for 2020 growth has already been laid,” said Abhilash Kumar, research analyst with Counterpoint, which has an office in San Diego.
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Will the coronavirus outbreak derail a 5G-led rebound in smartphone sales? - The San Diego Union-Tribune
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