The report is citing pandemic-induced disruptions — such as delayed work resumption and labour and material shortages — across the supply chain as the reason for this dip.
“The pandemic is now making its effects felt on the demand side of the smartphone market by tanking major economies worldwide,” TrendForce said.
In this quarter, as per TrendForce report, South Korean tech giant Samsung ranked first with a total market share of 23.3%. The company faces increasing pressure from Chinese brands, suggests the report. “Most of Samsung’s smartphone assembly lines are located in Vietnam and India, and the company possesses about only 2% of the market share for smartphones in China. Its production was thus not significantly affected by issues related to the disease during the initial phase of the outbreak in China.” The company produced 65.3 million units in the first quarter of 2020 dropping it by 9.9% year-over-year.
At the second position is Huawei with a 16.4% market share. The report says that the demand of the brand in its primary market of China has started improving. “With the support of domestic demand, Huawei’s smartphone production for 1Q20 came to 46 million units, in line with TrendForce’s earlier projection. If China’s economy continues to improve, Huawei’s production for 2Q20 may register a QoQ growth and reach approximately 48 million units.”
At the third position is Apple with a 13.5% market share in the first quarter of 2020. As per the report, iPhone production fell to 37.9 million dropping by 8.7% year-over-year due to labour and material shortages following the post-Lunar New Year work resumption, says TrendForce. “As the company releases the new iPhone SE with a consumer-friendly price tag in 2Q20, quarterly iPhone production is expected to stay relatively close to 1Q20 figures, reaching 36 million units,” says the report.
The next three spots are Chinese smartphone brands — Xiaomi, Oppo and Vivo — with 8.8%, 8.6% and 8.2% market share respectively.