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Smartphone manufacturing

Smartphone manufacturing

Smartphone manufacturing is going through the biggest downturn in history

In January-March among the leading smartphone manufacturers, the negative dynamics was observed in all but Vivo.

The volume of production of smartphones in the world in the first quarter of 2020 decreased by 10% to about 280 million devices. This is reported in the report of the analytical company TrendForce.

The main reason for the decline is called the failure of the supply chain against the backdrop of the coronavirus pandemic.

In the second quarter, the situation in terms of production has improved, but now the pandemic is negatively affecting the level of demand in the world's largest markets. With this in mind, analysts predict a decline in production of smartphones by 16.5% per annum and supply of 287 million units. If the fears come true, it will be the most significant fall in the second quarter in the history of the industry.

TrendForce estimates for 2020 as a whole assume that smartphone production will decline by 11.3%, to 1.24 billion units.

In January-March among the leading brands, the negative dynamics was observed almost by all.
Samsung's production of smartphones in January-March fell by 9.9% year-on-year to 65.3 million units, taking into account that the market share of the company was 23.3%. According to TrendForce forecasts, in April-June Samsung expects a quarterly decline by another 10.7%, to 58.3 million devices.

Second place in the ranking of the leading smartphone manufacturers was taken by Huawei, which managed to compensate for the sharp drop in foreign sales at the expense of its domestic market. According to TrendForce calculations, in January-March Huawei released 46 million smartphones or 16.4% of the global volume. According to analysts, in the second quarter Huawei may increase the production of smartphones to 48 million.

Apple took only third place in the TrendForce list. Production of iPhones in the starting quarter of 2020 decreased by 8.7%, to 37.9 million iPhones. With the release of iPhone SE, production of Apple smartphones in the second quarter is not expected to change much and will be within 36 million devices.

Next in the list is Chinese company Xiaomi, which last quarter produced 24.5 million smartphones (8.8%), about the same amount as a year ago. In the second quarter, an annual decline of 10.7% to 27.5 million smartphones is expected.

The fifth place is occupied by Oppo (24 million smartphones; - 10.4%), while Vivo closed the rating (23 million; +5.5%). The latter has become the only brand in the list with positive dynamics.


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