Canalys: Xiaomi's sales increased by 9% year-on-year, and its performance was the best; Huawei's overseas shipments plummeted by 35%

 Beijing time, May 1st morning news, market research firm Canalys released a report on Friday saying that the new coronavirus epidemic had a serious impact on the global smartphone market in the first quarter of 2020, with shipments falling 13% year-on-year to 272 million units.

According to the Canalys report, Samsung regained the top spot in the market in the first quarter, but its shipments fell 17% year-on-year to 60 million units. Huawei's shipments were 49 million units, down 17% year-on-year. The company is continuing to shift from overseas markets to the Chinese market. Apple ranked third, with shipments falling 8% year-on-year to 37 million units. The best performer among the top five was Xiaomi, which ranked fourth, with sales increasing 9% year-on-year to 30 million units. Vivo ranked fifth with sales of 24 million units, up 3% year-on-year.

The global smartphone market performed well at the beginning of 2020, having achieved growth for two consecutive quarters. But now "demand for new devices has collapsed," said Ben Stanton, senior analyst at Canalys. "In February this year, when the epidemic was concentrated in China, the main concern of relevant manufacturers was how to produce enough smartphones to meet global demand. But in March, the situation changed a lot. Smartphone manufacturing is now gradually recovering, but with half of the world severely affected by the epidemic, mobile phone sales have plummeted. Poor performance, layoffs and shutdowns have caused great anxiety and uncertainty in the market. For most people, smartphones are still a necessity, and online channels ensure that people who must replace their phones can buy them, but many consumers who regard new phones as luxury goods have postponed their purchases."

Canalys analysts pointed out that almost no smartphone manufacturers can withstand the current impact. Samsung was in a favorable position in February due to its manufacturing operations concentrated in South Korea and Vietnam. However, as the epidemic spread globally, such advantages quickly disappeared. Apple is one of the manufacturers that has been less affected due to the strong sales of iPhone 11 earlier in the quarter. In addition, Apple's recently launched new iPhone SE is of great strategic significance, which can ensure iPhone shipments while users are waiting for 5G flagship devices. Huawei's overseas shipments plummeted by 35%, and the company launched the first P series phone P40 without integrated Google mobile services. However, channel dealers were concerned about these untested products, so the initial channel orders were lower than Huawei's expectations.

According to the Canalys report, the epidemic has also had a huge impact on smartphone sales channels. In regions such as Europe where strict quarantine measures are implemented, omnichannel retailers are trying their best to transfer offline inventory to online channels, but at a huge cost. These retailers are not yet ready for a full shift to online in terms of warehousing, transportation, and delivery capabilities. This also affects their demand for purchasing from suppliers and distributors. Canalys analysts expect that in these regions, e-commerce channels will have a clear advantage in the coming weeks.