With the world in the midst of a pandemic that, particularly in the US, has resulted in job losses, incomes and other hardships, the smartphone market is apparently not getting too hot. Today, a report from Canalys shows that American smartphone buyers paid less for their phones in Q2 and expensive flagships performed particularly poorly as a result.
Q2 2020 was when the coronavirus pandemic hit the US the hardest, with millions of people going into lockdown to prevent the spread of the virus. As a result, many companies have overworked employees who have left many with economic uncertainty.
The smartphone industry in the US shipped 31.9 million devices at the time, a 5% decline compared to 2019. Apple and Samsung obviously dominated most sales, with 7 out of every 10 devices being one of two brands like. However, Apple saw increasing shipments of its iPhone 11 and affordable iPhone SE models in the quarter, leading to 10% annual growth.
Samsung, on the other hand, was suffering badly. The company ended up falling by 1% compared to the previous year, but its flagship segment fell sharply. 59% fewer Galaxy S20 devices were sold compared to the Galaxy S10 series a year earlier.
With no end in sight to these economic problems, Canalys also predicts that the sector will warm up to $ 400, specifically calling on Google’s efforts with the Pixel 4a.
Higher unemployment has curtailed consumer choice, in some cases limited the ability to purchase a new device or cover phone-related expenses. With economic challenges likely to persist, the sub-US $ 400 segment is poised to gain more prominence, especially as Google and other Android players increase their exposure to the low- and mid-range segments.
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