China contributed 72 per cent to the global 5G handset revenue in Q2 2020, according to a recent report by Counterpoint. According to the report, 5G shipments witnessed an uptick in the second quarter of the year which in turn contributed to the increase in the wholesale average selling price (ASP) of the global smartphone market.

As per the report, ASP increased 10 per cent YoY in Q2 2020 even as shipments witnessed a highest ever decline at 23 per cent YoY. Overall, the smartphone industry revenue declined 15 per cent YoY during the quarter.

A majority of 5G shipments and revenue came from China. Most of this was driven by the push from Huawei, the report said. The region contributed over 34 per cent of the global smartphone revenue as per the report.

“This was also because while all the other major economies were still suffering from the severe impact of Covid-19, China was already on the path to recovery,” Counterpoint said.

Apart from this, the premium segment was also relatively resilient, declining at 8 per cent YoY during the quarter.

“The economic impact of the pandemic on the potential user base of the premium segment was less when compared with other customer segments,” the report said. For instance, the shipments for Apple, the largest player in this segment increased 3 per cent YoY and iPhone revenues increased 2 per cent YoY.

“There was also an increased dependency on mobile phones during the lockdown, with work from home, study at home, productivity applications, gaming, entertainment and other content consumption happening through mobile phones in varying degrees. This also propelled some consumers to upgrade their devices for a better overall user experience,” the report said.

In comparison, entry level smartphones witnessed a larger decline. “Entry-level devices are usually bought offline, and most of the global markets were in some stages of lockdown during Q2 2020. Consumer sentiment was also low, with users in the low-middle class avoiding discretionary purchases,” the report said.

The report was based on analysis by Counterpoint’s Market Monitor Service which tracks shipments for over 140 brands in more than 60 countries.

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Smartphone, 5G, Mobile phone, Huawei

World news – CA – 72% of the global 5G handset revenue in Q2 2020 came from China: Report

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