5G handset production to hit 235m units in 2020

Given the total smartphone production forecast of 1.24 billion units in 2020, 5G handset production is expected to reach 235 million units, an 18.9% penetration rate, said world leading market research firm TrendForce in a new report.

According to the latest investigations by TrendForce, the Chinese government’s 5G commercialization efforts have been particularly aggressive, leading the country’s 5G base station deployment and network coverage to each score first place in the global 5G industry.

Chinese brands, which were ahead of their competitors in 5G strategies, occupied a 75% share in the global 5G smartphone market in the first half of 2020 (1H20).

An analysis of the projected top six smartphone brands ranked by 5G smartphone production volume shows Huawei firmly sitting in first place. Huawei has shifted its focus to the domestic Chinese market under the impact of US sanctions and in preparation for China’s active 5G commercialization efforts. The company is expected to produce about 74 million 5G smartphones this year.

5G remains a hot topic in the smartphone market this year, as smartphone brands and mobile processor manufacturers, such as Qualcomm and MediaTek, strive to expand their shares in the 5G market.

TrendForce indicates that, aside from the various Android-based smartphone brands, Apple’s new models will also join the ranks of 5G smartphones.

Apple’s yearly 5G smartphone production is expected to total about 70 million units in 2020, which lands the company in second place. However, 5G functions will increase the production cost of smartphones accordingly. If Apple decides to directly reflect this added cost on the retail prices of the iPhone 12 series, it may lower its consumers’ willingness to purchase, in turn affecting the sales performances of the new iPhones.

Samsung has been experiencing setbacks in the Chinese market in recent years. Although these setbacks have not seriously affected its global market share and revenue, they have considerably slowed Samsung’s growth in the 5G smartphone market. Samsung’s 5G smartphone production this year is forecasted at 29 million units, placing the company in third place globally. Vivo, OPPO (including OnePlus, OPPO, and Realme) and Xiaomi are tied for fourth place.

As Huawei’s aggressive domestic expansion in the past few years has compressed the market shares of the three brands in the Chinese market, they have been actively focusing on increasing overseas market shares to maintain their yearly production performances. Vivo, OPPO, and Xiaomi’s yearly 5G smartphone production volumes are projected to reach about 21 million, 20 million, and 19 million units, respectively. - TradeArabia News Service

Source: http://www.tradearabia.com/news/REAL_370763.html


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