TrendForce: smartphone production to drop by 16.5% YoY in Q2 2020

30 Април 2020, 05:36:19

TrendForce: smartphone production to drop by 16.5% YoY in Q2 2020The latest TrendForce smartphone market report states that smartphone production in the second quarter of 2020 will drop by 16.5% YoY or around 287 million units. This is a historical record in a year-on-year decline for this quarter. Global smartphone production fell by 10% YoY in the previous quarter to around 280 million inits - the lowest in 5 years. Despite these drops with China's economy gradually restarting and resuming production in other parts of the world, TrendForce forecasts a total yearly production volume of 1.24 billion units, an 11.3% decrease YoY.

Samsung remains the leader in the market but with decreased production volume which in Q1 of 2020 came to 65.3 million units, showing a YoY drop of 9.9%. The projected production volume for Q2 of 2020 will record another decrease - 10.7% QoQ to 58.3 million units.

Huawei experienced a severe decline in overseas sales because of its new smartphones were excluded from Google's Mobile Services. However, with the Chinese market on the path to recovery, in Q1 Huawei produced 46 million units. If the Chinese economy continues to improve, an estimated increase of 2 mln units QoQ is expected.

Apple is third in the smartphone market with a decrease in production by 8.7% YoY to 37.9 million units in the first quarter. For the second quarter, it is expected to produce even less -around 36 million units.

Xiaomi is the fourth brand in the smartphone market and during Q1 it remained largely unaffected by the COVID-19 crises because more than 70% of its market is overseas. So, for Q1 it produced around 24.5 million units, which is roughly the same as with Q1 of 2019. However, for Q2 TrendForce predicts a 10.7% YoY decrease for Xiaomi's production to 27.5 million units.

OPPO (including OnePlus, OPPO, and Realme) is fifth in the global smartphone market, followed by its sister brand Vivo, which is sixth. Oppo's Q1 production recorded a 10.4% YoY decrease to 24 million units. Vivo recorded a 5.5% growth in Q1 however this is compared to a very low Q1 of 2019. For Q2, TrendForce predicts more than 14% YoY decrease for each brand.

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