Counterpoint has released current figures on the smartphone market in China. In the second quarter, the market shrank by 17 percent compared to the previous year, but compared to the first quarter in China, which was also badly affected by the COVID 19 pandemic, there was an increase of nine percent. This was due, among other things, to increasing demand for 5G smartphones.
The share of 5G-capable devices was 33 percent in the second quarter. Of the smartphones sold in June, 40 percent even support the new cellular standard. In the first quarter it was an average of 16 percent. According to Counterpoint, China is the market with the highest proportion of 5G smartphones.
The market for 5G smartphones in China is controlled by the providers,Vivo and with a share of 95 percent. The devices themselves are in the middle to upper price range around $ 400 – and the trend is downward.
China is considered a pioneer in 5G network expansion. It is estimated that the People’s Republic accounts for almost 50 percent of global 5G infrastructure spending this year.
Huawei also further expanded its supremacy in the Chinese market. Its market share climbed to 46 percent in the second quarter, 13 points more than in the same period last year. The company grew primarily at the expense of Vivo, Oppo and Xiaomi. Onlysecured a higher market share (9 percent) in the second quarter of 2020 than in April, Mail and June 2019 (6 percent).
Huawei’s market share in the 5G segment even increased to 60 percent. Consumers often opted for the Mate 30 or P40 series. Apple has grown without 5G-enabled devices – the first 5G iPhones are expected in the fall.
According to a current forecast by Gartner, 5G smartphones worldwide should only reach a share of 11 percent this year. While there is a dispute in the west about Huawei’s participation in network development, China apparently already has so many networks in operation that, according to Counterpoint, 40 percent of smartphone buyers there opted for a 5G product in June. In addition, the high cost of 5G contracts should hinder the spread of technology in industrialized countries.