Market research agency: Affected by US "sanctions", Xiaomi may become Germany's next Huawei

The latest report from market research firm Counterpoint shows that smartphone shipments in Germany fell 27% year-on-year and 15% month-on-month in the second quarter of 2020. In response to the COVID-19 pandemic, Germany has been in a "national lockdown" since mid-March, leading to an economic recession and a decline in purchasing power.

Image source: Counterpoint

From the manufacturer ranking, Samsung maintained its leadership with a 37% market share thanks to strong sales of Galaxy A21s and A41. Sales of the new iPhone SE 2020 helped Apple's market share increase by 7% year-on-year to 23%, ranking second. Huawei ranked third, with an 18% share in this market, slightly lower than the same period last year.

It is worth mentioning that Xiaomi has grown from 1% market share last year to 5%, and Counterpoint said Xiaomi's best-selling model is the $700 Xiaomi 10 5G. Xiaomi started its smartphone business by selling entry-level models and is now expanding into the lucrative high-end market.

Counterpoint also pointed out that because Germany is an important high-end market, Xiaomi has carried out aggressive marketing in the country, such as opening the first Xiaomi store in the market during the epidemic. Affected by the US "sanctions" on Huawei, Xiaomi may become the next Huawei in Germany.

In addition, Counterpoint mentioned in the report that one of the main impacts of the epidemic on the smartphone market is the sluggish demand for the high-end market segment. The sales volume of smartphones priced at US$800 and above has shrunk to 7% from 19% in the previous quarter and 13% in the same period last year.

Image source: Counterpoint

Finally, Counterpoint noted that the German smartphone market has begun to slowly recover from the lows in April and expects smartphone sales to rebound in the third quarter.