Smartphone Sales Down 10.7% This Year... 5G Phones Reach 280 Million Units

Canalys "Smartphone Market to Decline 10.7% Year-on-Year This Year"
5G Phone Shipments Expected to Grow from 280 Million to 540 Million Units

Among 5G smartphones, Realme's V3 was released at the lowest price. Priced at 999 yuan, it is approximately 170,000 KRW.

[Asia Economy Reporter Han Jinju] Smartphone shipments this year are expected to decrease by 10.7% compared to last year. The proportion of 5G smartphones among all smartphones is increasing, with shipments projected to reach 280 million units this year and to grow about twofold next year.

On the 9th (local time), market research firm Canalys forecasted that the smartphone market in 2020 will shrink by 10.7% compared to last year but will rebound by 9.9% next year.

Ben Stanton, a researcher at Canalys, explained, "Smartphone shipments are rapidly recovering with the launch of new products," adding, "As offline stores gradually resume operations and production and logistics improve, the smartphone market is stabilizing little by little from the second half of the year."

2020 5G Smartphone Shipment Forecast by Region (Source: Canalys)

Canalys projected 5G smartphone shipments this year to be 278 million units. The 5G smartphone shipments in 2021 are expected to reach 544 million units, a 95% growth.

The regional market share and shipment volumes of 5G smartphones are as follows: China 62% (172 million units), North America 15% (42 million units), Europe and the Middle East 11% (31 million units), Asia 11% (29 million units), and South America 1% (3 million units).

In particular, growth in the 5G smartphone market in China is expected to determine this year's 5G smartphone shipment volume. Shipments of mid- to low-priced 5G phones are significantly increasing, centered on Chinese manufacturers. In 2021, it is expected that 60% of 5G smartphones shipped in China will be priced under $400.

Researcher Jin Xuantao stated, "Realme has launched the 5G smartphone V3 priced under $150, which will have considerable ripple effects in Southeast Asia, the Middle East, and South America," and added, "China's 5G smartphone penetration rate is expected to reach 83% within 12 months."

Meanwhile, Europe, including the UK, has emerged as the third-largest market for 5G smartphones. There is also considerable pent-up demand for Apple's 5G iPhone release. However, some analyses suggest that uncertainty over Huawei's supply reductions due to US government sanctions could be a variable affecting the spread of 5G smartphones.

This content was produced with the assistance of AI translation services.