The iPhone SE is the highlight of a grim US smartphone market

The iPhone SE is the highlight of a grim US smartphone market

  • US smartphone gross sales plunged 25% within the second quarter because of the COVID-19 pandemic.
  • The iPhone SE was a uncommon ‘brilliant spot’ in a troublesome local weather.
  • The Galaxy S20, nevertheless, arrived on the worst potential time.

If you suspected that COVID-19 would severely damage US smartphone gross sales, you guessed appropriately — though there are a couple of exceptions to the rule. Counterpoint Research estimates that US smartphone gross sales declined 25% year-over-year within the second quarter of 2020 because the pandemic took maintain, however it’s now clear that some telephone makers fared higher than others.

Apple carried out comparatively properly regardless of the grim local weather. While its gross sales reportedly dropped 23% in comparison with Q2 of 2019, the brand new iPhone SE was a “brilliant spot,” in keeping with the researchers. It helped Apple develop gross sales because the quarter progressed, and even managed to draw a “greater than regular” variety of converts from Android. About 26% of iPhone SE patrons got here from Android gadgets.

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Other corporations’ fortunes had been combined. Samsung’s gross sales solely dropped by 10%, helped partly by sturdy on-line gross sales, however the Galaxy S20 sequence launched proper as shops closed and states entered lockdowns. S20 activations within the first 4 months after launch had been 38% decrease than for the Galaxy S10 a yr earlier, Counterpoint stated. The analysts predicted that some S20 gross sales would come again within the third quarter, however others could be “misplaced” for good.

Counterpoint noticed indicators of a potential turnaround.

It wasn’t fairly for many different massive manufacturers. Alcatel (aka TCL) noticed a light 11% drop due to its deal with pay as you go gross sales and government-subsidized applications like Lifeline, however some opponents weren’t so lucky. LG’s gross sales fell 35%, whereas OnePlus, Motorola, and ZTE all noticed their gross sales plummet by over 60% within the interval.

Counterpoint noticed indicators of a potential turnaround. Stimulus checks and retailer reopenings helped fulfill “pent-up demand,” the analysis agency stated. June smartphone gross sales had been even greater than they had been a yr earlier.

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With that stated, there are some unknowns. The COVID-19 surges in some states have led to shops closing once more, and it’s not clear how potential second waves of the virus would possibly have an effect on gross sales towards the top of the yr. This may very well be the worst blow to telephone gross sales through the pandemic, however it may be the prelude to a different disaster within the months forward.

Next: Every main tech occasion canceled or postponed resulting from COVID-19


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