TrendForce: Xiaomi, OPPO and other brands may “divide” Huawei’s Chinese market share in the second half of the year

The latest report released by TrendForce shows that the total number of smartphones produced globally in the second quarter of 2020 was 286 million units, a year-on-year decrease of 16.7%, the largest single-quarter drop in history.

Image source: TrendForce

From the manufacturer ranking, Samsung ranks first with 55 million units. Huawei ranks second with a production volume of about 52 million units. Apple ranks third with a production volume of 41 million units. The brands ranked fourth to sixth are Xiaomi, OPPO (including OPPO, OnePlus, realme) and vivo, with their second quarter production volumes of 29.5 million units, 27.5 million units and 26.5 million units respectively.

However, TrendForce also pointed out that major brands will release new flagship phones in the second half of the year, and competition in the Chinese smartphone market will intensify. In addition, the continued expansion of US sanctions against Huawei will not only cause a sharp drop in Huawei's overseas sales, but will also significantly weaken its advantage in independently developing mobile processors. The difficulty of obtaining components in the future may increase significantly. For Huawei, which has a single sales market, it is expected that other Chinese brands such as Xiaomi, OPPO, and vivo will share its market share.

In addition, TrendForce estimates that the total global smartphone production will remain at 1.243 billion units in 2020, and the number of 5G smartphones will rapidly increase to approximately 238 million units, with a penetration rate of 19.2%.

Finally, TrendForce also made predictions on the specifications and prices of Apple’s upcoming iPhone 12, as shown in the figure below: