Mobile Industry during the Pandemic

2020 is undoubtedly difficult for many industries. The unexpected epidemic has caused a considerable impact on the economy, the offline consumption scene is sluggish, and consumer spending is reduced. Smartphones are also one of the industries affected.

Recently, Counterpoint, a market research organization, released a report on the Chinese smartphone market for the second quarter of 2020.Smartphones price in Pakistan has also been affected in 2020. The report shows that domestic smartphone sales in the second quarter increased by 9% month-on-month, and 5G mobile phone sales accounted for 33%. It can be seen that with the sudden emergence of 5G mobile phones, the mobile phone industry is slowly recovering.

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The report also pointed out that Huawei’s domestic market share in the second quarter was as high as 46%, unsuspectingly regaining the throne of sales champion. It is worth noting that Xiaomi’s market share is only 9%, and the ranking has dropped to fifth, being overtaken by the “dark horse” Apple .

The epidemic has promoted the reshuffle of the domestic smart phone market, and Huawei has swept through the army,  its market share exceeding 50% is just around the cornerand the price of Huawei smartphones in Pakistan have been considerably low as compared to other mobile brands. But with millet in China meter fall to the team competition OV plus the top five vendors in this apple.

But the problem is that spring may not come immediately after the cold winter. Facing the changing external situation, can Huawei withstand the pressure and maintain its current lead? Can Xiaomi repeat the miracle of 2017 headwind.Huawei stands out

For a long time, China has been the world’s largest smartphone market with a huge user base. Therefore, whether it is domestic manufacturers such as Huami OV, or international giants such as Apple and Samsung, they pay special attention to the layout of the Chinese market.

Under fierce competition, Mr. Technology noticed that in recent years, Huawei’s smart phones have gradually shown a leading edge. Whether it is market share or word-of-mouth, it has led a group of “friends” in the domestic market.

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In addition to Counterpoint’s data, Tech Jun also consulted another third-party data research organization Canalys released a report on the Chinese smartphone market. From the first quarter of 2019 to the first quarter of 2020, Huawei’s market share has risen steadily. In 2020 In the first quarter, despite the impact of the epidemic, it still won 41.4% of the market share.

Technology Jun believes that there are two reasons why Huawei is able to dominate the Chinese smartphone market.

The secondary reason is the changes in the international environment. Huawei is suppressed by the United States. Chinese consumers unconditionally support domestic manufacturers and do not want to watch Huawei be knocked down by hegemony.

The main reason is that Huawei has strong strength, has the absolute right to speak in 5G technology, and uses its own Kirin chip advantages to allow many low-end models to use powerful self-developed chips, and to bring better camera modules to users. However, facing the rapidly changing external situation, whether Huawei can stabilize its current lead is still uncertain. People who eat melons like Science and Technology can only expect Huawei to forge ahead, further realize technological autonomy. Millet’s transformation pains?

Different from Huawei, which stands out, is Xiaomi, which is under tremendous pressure to transform. According to Counterpoint data, in the second quarter of 2020, Xiaomi has only 9% of the Chinese smartphone market.

More importantly, in the second quarter, Apple’s mobile phone sales rose by 32% month-on-month, Huawei rose by 14%, vivo fell by 29%, and OPPO fell by 31%; Xiaomi, ranked fifth, declined the most, with its market share dropping by 35%.

In other words, the recovery of the epidemic in the second quarter coincided with an important e-commerce shopping festival such as 618. Instead of seizing the opportunity to take the opportunity to a higher level, Xiaomi lost the large-scale market, compared with the worst-case sales in the first quarter.

Xiaomi’s sales in the second quarter were sluggish, which was affected to a certain extent by their transformation and upgrading. At the beginning of the year, after Xiaomi launched high-end models, the main brand has not launched other models. Perhaps now the main Xiaomi brand wants to take a small but refined route like the iPhone, and completely hand over the cost-effective route to the sub-brand RedMi under the helm of Lu Weibing.

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However, from the observation of the technology king, although the XiaomiMi 10 series is quite cost-effective, and even now it is a very competitive flagship mobile phone, it still has not helped Xiaomi to change its brand image. From the perspective of most of my friends, they are still reluctant to buy Xiaomi phones at high prices.

The decline in Xiaomi’s sales is also the result of fierce market competition. In the past two years, the domestic smartphone market has become saturated, 5G iterations have been slow, and many manufacturers have launched sub-brands to compete for differentiation. Vivo established a new sub-brand iQOO, OPPO launched a new series of product line Reno, focusing on cost performance, competing with Xiaomi and Honor for online share.

It can be said that the current domestic smart phone market has formed a strange circle. OV gave up the huge profits of offline channels and beat the former online hegemon Xiaomi; Xiaomi stared at Huawei and Honor, while attacking the high-end Huawei, while adding RedMi to Honor; but Huawei is like Zhang Wuji, a superb master , Fought fiercely against the “six major factions” without fear, and incidentally defeated the two “overseas masters” of Apple and Samsung in the high-end flagship market.

Half of 2020 has passed. Affected by multiple factors such as the epidemic, the domestic smartphone market is changing. In the second half of the year, we will also usher in major events such as the escalation of Huawei’s ban and the release of Apple’s new machine. 

Wajazali

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