Overall smartphone market is shrinking but Realme grew 848%https://indianexpress.com/article/technology/tech-news-technology/overall-smartphone-market-samsung-xiaomi-apple-is-shrinking-but-realme-grew-848-percent-5865591/

Overall smartphone market is shrinking but Realme grew 848%

The combined global market share of Chinese smartphone companies including Huawei, Oppo, Vivo, Xiaomi, and Realme grew 79 per cent to reach the highest-ever level in Q2 2019, even as overall market smartphone shipments declined one per cent in the quarter, according to research firm Counterpoint.

Realme, which was also among the top five smartphone vendors in India in the third consecutive quarter in Q2, showed a strong growth globally as well, capturing 1.3 per cent global market share.

The combined global market share of Chinese smartphone companies including Huawei, Oppo, Vivo, Xiaomi, and Realme grew 79 per cent to reach the highest-ever level in Q2 2019, even as overall market smartphone shipments declined one per cent in the quarter, according to research firm Counterpoint. The combined share of the five companies was recorded at 42 per cent in Q2 2019.

Further, BBK Group, which owns Vivo, Oppo, Realme and OnePlus is now the second-largest smartphone manufacturer globally. In India, the BBK Group is the largest smartphone manufacturer with a 30 per cent combined share in the second quarter of this year, as per a previous Counterpoint report.

Realme, which was also among the top five smartphone vendors in India in the third consecutive quarter in Q2, showed a strong growth globally as well, capturing 1.3 per cent global market share. It scored the tenth position with 4.7 million smartphone units shipments in Q2 from 0.5 million units in the second quarter last year.

The 848.0 per cent year-on-year (YoY) growth is surprising given the company is only two years old and is able to position itself in the top ten smartphone companies worldwide, led by Samsung, which shipped 76.6 million smartphone units.

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Huawei could register a “steep decline” in the overseas market in the Q3, even as the company grew 4.6 per cent YoY in Q2. (Image: AP)

As per Counterpoint, Realme’s strong performance in India, as well as expansion overseas, can be attributed to its worldwide growth. It took the Chinese player about a year to make it to the list of top 10 OEMs globally, which according to the firm is one of the fastest ramp-ups.

Samsung’s 76.6 million smartphone units shipments and 21.3 per cent global market share was followed by Huawei with 56.7 million shipments and 15.8 per cent market share in Q2. Thanks to the US ban, Huawei’s global shipments numbers could register a “steep decline” in the overseas market in the Q3, even as the company grew 4.6 per cent YoY in Q2.

Also read: Vivo likely to take over Samsung in India smartphone market by the end of 2019: Canalys

Tarun Pathak, Associate Director at Counterpoint Research, said in a press statement that Huawei recorded growth despite the US ban, which did not translate into falling shipments in the second quarter. In Q3, Huawei could register growth in its home market China due to an aggressive approach, though a decline in overseas shipments can not be avoided.

“This will further lead to the decline of the overall smartphone market in 2019. However, the gap created in the market by Huawei gives a window of opportunity to other OEMs, especially Samsung, to leverage,” he added.

As per Counterpoint, Realme’s strong performance in India, as well as expansion overseas, can be attributed to its worldwide growth. (Image: Counterpoint)

Apple took the third spot as it shipped 36.4 million smartphone units worldwide with 10.1 per cent market share. Apple’s iPhone shipments declined for the third consecutive quarter, though iPhone sales trends improved, Counterpoint noted. Last year in the second quarter, the Cupertino technology company shipped a total of 41.3 million iPhone units worldwide. Shipments fell 11 per cent compared to 2018, while revenues declined 12 per cent year-on-year.

As for overall smartphone shipments, the growth of 5G technology could contribute to its growth but thanks to a slowdown in China, which is among the biggest smartphone markets worldwide accounting for over one-fourth of the global shipments, and the US-Chine trade war, the global smartphone shipments are likely to decline in the coming quarters.

Varun Mishra, Research Analyst at Counterpoint Research noted that the rollout of 5G will likely be faster than 4G and the sales of 5G devices is expected to be more than 20 million units in 2019. The faster rollout can be attributed to a number of factors like easy installation due to a universal standard and more OEMs committing to early 5G devices when compared to 4G era.