- US smartphone sales fell 25% in the second quarter due to the COVID-19 pandemic.
- The iPhone SE was a rare ‘bright spot’ in difficult weather.
- However, the Galaxy S20 arrived at the worst possible time.
If you suspected that COVID-19 would seriously harm smartphone sales in the United States, you guessed correctly, though there are a few exceptions to the rule. Counterpoint Research estimates that smartphone sales in the US declined 25% year-over-year in the second quarter of 2020 as the pandemic spread, but it is now clear that some phone manufacturers fared better than to others.
Apple performed relatively well despite the gloomy weather. While, according to the researchers, its sales fell 23% compared to the second quarter of 2019, the new iPhone SE was a “bright spot.” It helped Apple boost sales as the quarter progressed and even managed to attract a “larger than normal” number of Android conversions. About 26% of iPhone SE buyers came from Android devices.
The fortunes of other companies were mixed. Samsung’s sales were only down 10%, helped in part by strong online sales, but the Galaxy S20 series launched just as stores closed and states went into lockouts. S20 activations in the first four months after launch were 38% lower than for the Galaxy S10 a year earlier, Counterpoint said. Analysts predicted that some S20 sales would return in the third quarter, but others would “lose” forever.
The counterpoint saw signs of a possible change.
It wasn’t pretty for most of the other big brands. Alcatel (also known as TCL) experienced a slight 11% drop thanks to its focus on prepaid sales and government-subsidized programs like Lifeline, but some competitors were not as fortunate. LG’s sales fell 35%, while OnePlus, Motorola and ZTE saw their sales drop more than 60% in the period.
The counterpoint saw signs of a possible change. Stimulus checks and the reopening of stores helped meet “pent-up demand,” the research firm said. Smartphone sales in June were even higher than a year earlier.
That being said, there are some unknowns. The sudden spike in COVID-19 in some states has led stores to close again, and it is unclear how potential second waves of the virus could affect sales by the end of the year. This could be the worst hit for phone sales during the pandemic, but it could also be the prelude to another crisis in the coming months.
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