This archive report was first published on 31 July 2020.
China's smartphone market continued to contract in the second quarter of 2020, with overall shipments decreasing by 7% year-on-year to 97.6 million units. However, Huawei and Apple bucked this trend, increasing their share of the market.
According to recent data, Huawei shipped 40.2 million devices in China in the second quarter, an 8% increase from the same period in 2019. This growth helped the company maintain its dominant position in the market, with a 44% share.
Apple also saw significant growth, with sales of 7.7 million units in the second quarter, a 35% increase from the same period in 2019. However, the company's sales made up only 8.5% of the total market.
Next-generation 5G smartphones played a significant role in the market, with 39 million units sold in the second quarter, a 260% increase from the prior quarter. Analyst Louis Liu noted that local brands are driving 5G penetration within their portfolio to support operator efforts to transition existing 4G users to 5G.
However, Huawei's growth is being threatened by a spat with Washington, which has placed additional restrictions on American suppliers to the company. Analysts say these orders could cripple the company's chip division and its overseas phone sales.
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