Almost certainly, the second quarter of 2020 will be the worst quarter in smartphone history. In this quarter, the Covid-19 pandemic broke out in nearly all key markets across the globe. According to TrendForce estimates, the global market’s overall decline could be as high as 16.5%, a figure never before seen.
China is no exception. The latest Counterpoint data shows that the number of smartphones shipped in the world’s most populous market has dropped by 9%. Although the decline is not as high as other major markets, 9% is still an alarming number and is only inferior to the first quarter, when China was hardest hit by Covid-19.
The two groups are opposite
However, in this gloomy atmosphere, there are still 2 people who can go against the times. The first one, not surprisingly, was Huawei. Since being blacklisted by the U.S. government, Huawei has become a symbol of patriotism for Chinese consumers. In the second quarter, Huawei’s growth rate even doubled compared to the first quarter, reaching 14%.
The Chinese market has been divided into 2 distinct groups in the last 6 difficult months.
But the most “shocking” is Apple and the record growth in the market of billion people in the last quarter: 32%! With this increase, Apple is the most prosperous brand in China amid the gloomy season. Even the success of Apple is even more surprising when it has no 5G so far. All other Chinese phone brands, from Huawei to Xiaomi and OPPO / Vivo, have set foot on the new generation of connectivity since last year.
The one who pays the price for Huawei and Apple’s success is none other than the other Chinese names: Vivo, OPPO and Xiaomi, all of which are down 30%! Smaller brands (Lenovo, Samsung) are even more severely hurt by causing sales to evaporate by two-thirds.
Key of Tim Cook: launching “way” at the right time. After the iPhone XS results, the iPhone 11 has been starting off on all markets, including China. Entering 2020, Apple will continue to carry out many programs combining discounts with major e-commerce platforms in China. According to Counterpoint, the iPhone 11 was the best-selling smartphone in China in the first quarter. Although it did not disclose the figures for the second quarter, Counterpoint said the iPhone has “continued to be successful” to contribute to Apple’s position. in the 2nd quarter.
iPhone 11 and iPhone SE, two tricks launched by Tim Cook at the right time.
Equally important is the iPhone SE. Launched in March, the iPhone SE saw Apple’s return to the mid-range segment after years of absence. It is the appearance of the “affordable” iPhone at the moment that the purchasing power of users (China and worldwide) to the lowest level has contributed to saving sales for Apple.
Look to the future
What just happened in China shows why investors are “crazy” about Apple. Even in adversity – having to close down due to Covid-19, and have been affected by the trade war, Apple can still grow strongly at the “home ground” of the fierce rivals. If even a challenging market like China can’t beat Apple, Tim Cook’s company will surely continue to live well, living well through the pandemic.
On the opposite side, 3 brands Vivo, OPPO and Xiaomi are all showing signs of losing their breath at home. In fact, the second quarter of 2020 has almost repeated the results of the first quarter when these three big men all decline at 30% of the digits. This phenomenon shows that the durability of Vivo, OPPO and Xiaomi is inferior to Apple: when fluctuations (such as when users switch to support Huawei or when the market is in crisis because of Covid-19), Apple stands firm and the Chinese trio quickly declines.
Success in the “country of origin” gives Apple the right to hope for a bright future ahead.
Certainly, Xiaomi, OPPO and Vivo will have a headache when the 5G revolution breaks out at the end of the year. According to the rumors, iPhone 12 will be the first generation to be equipped with 5G connectivity. The starting price of the iPhone 11 will also be reduced to an especially attractive price by Apple, $ 550 in the US, $ 150 lower than the starting price of the iPhone 11 last year.
And the iPhone 12 will also be the first generation to change the design after 3 years of Apple recycling the iPhone X. Every sign of success is converging, and if we continue to maintain the momentum of victory as today, most likely. Apple will reach the $ 2 trillion mark while Chinese rivals are still struggling!