Smartphone Production Registers 10.5% Quarterly Growth

Smartphone Production Registers 10.5% Quarterly Growth

Smartphone production has registered an impressive growth of 10.5 percent during the last quarter, compared to the same period last year. The report compiled by market intelligence firm TrendForce suggests that production volume during the quarter touched 344 million units. The top six producers include Samsung, Huawei, Apple, OPPO, Xiaomi and Vivo.

The trade war had an impact on smartphone production numbers. Due to trade war, Huawei and Apple suffered decline in production numbers during the current year. The report by TrendForce further added, “Despite growing over 2Q19 by 5.8%, this is still a 4.4% decline YoY compared to the figure of 380 million units for the same period last year. Total smartphone production volume is expected to arrive at 1.38 billion units, a YoY decline 5%.”

Samsung has gained as Huawei has faced decline. Looking at the 2Q19 rankings for smartphones, we see Samsung steadily taking first place yet again, with production volume coming to 76.5 million units, a 3% growth YoY, registering the best performance in a single quarter since 2018. This is due to Huawei's loss in European and American market share as an effect of the ban.

Apple’s production volume for 2Q19 came to about 38.8 million units, a new low since 2015, putting Apple at a global third place. Looking at its 2Q19 performance, we see that apart from the high prices of new devices, which is of no help in motivating customers to reach for their wallets, the effects of the US-China trade dispute on sales in China markets and the relatively long periods of time for which Apple clients hold on to their phones compared to Android clients all formed the major reasons for the lack of purchases.

2020 to Usher in the Era of 5G Smartphones, with China Brands to Take Over Half in 5G Smartphone Market Share.

The smartphone market requires the help of hot topics to motivate demand in 2020 looking forward. Aggressive R&D on the part of brands and the China government's proactive push for 5G commercialization will both accelerate the arrival of the 5G era. The penetration rate of 5G smartphones next year may get a chance to arrive above 15%, with China brands to make up over half of total 5G production volume.