- About 70% of smartphones shipped to the US in Q2 2020 were made in China, estimates Canalys.
- Apple, Motorola, and cheap brands like Unimax and Wiko flourished.
- Samsung was relatively stable compared to previous quarters.
The United States and China are currently less than friendly terms, but you would not know it by looking at the smartphone market. Canalys estimated that devices made by China accounted for 70% of smartphones shipped to the US in the second quarter of 2020, a sharp jump of 60% the quarter before.
Apple was one of the clear price winners, with shipments jumping 10% versus a year earlier. Other markets also did well, however. Motorola (that is, Lenovo) saw its own shipments climb 8% in the spring. In addition, relatively small low-end brands such as Unimax and Wiko flourished.
COVID-19 likely reason for excitement of smartphones made in China
It will not shock you to hear that the COVID-19 pandemic probably played a role in the shift. Many consumers needed to be more cost-conscious because of unemployment and personal budget cuts. The $ 399 iPhone SE, for example, was one of Apple’s strongest sellers. As another example, the previously mentioned Android devices sometimes went low to people signing up for Lifeline. This is an assistance program that provides subsidized phone service for low-income families.
The average price of a phone sold in the US dropped to $ 503, or 10% less than a year earlier.
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There was some stability for companies that generally make phones outside of China. Samsung’s numbers were virtually year-over-year, as sales of budget phones such as the Galaxy A10e and A20 made up for shortcomings with flagships such as the S20. LG’s figures dropped 19% over the same period, but it was considered relatively stable. And Chinese connections were no guarantee of success – TCL saw its shipments drop 43%, despite launching phones like the 10 Series.
The situation could change wildly. Canalys notes that volatile US-China tensions were an “eternal state of uncertainty” for virtually every phone maker outside of Samsung and LG. Even if the pandemic comes to an end soon, phone makers may not take relief from relief until the political climate subsides.
