Counterpoint: Average selling price of smartphones rises 10% globally in Q2 2020

Joanna Estrada
September 28, 2020

Also, the second quarter of this year, which the statistics point out, reveal that Apple has swum against the stream with increased shipments of 3%. Among them, China is the largest contributor to 5G smartphone sales.

The increase in price is attributed to the fact that although global smartphone sales are slipping worldwide, premium priced smartphones are still selling well, seeing only an 8% decline YoY. The major markets: North America, Latin America, Europe, Middle East and Africa, Asia-Pacific, and China are listed in the visual graphic below. Meanwhile, Huawei came in second with 20% of revenue and Samsung right after with 17% of global smartphone revenue for the same quarter. It is reported that 72% of global 5G smartphone revenue comes from China.

The report also shows that in the second quarter of 2020, the average selling price (ASP) of the global smartphone market increased by 10% year-on-year. This is despite the severe impacts that the United States ban has had on Huawei in markets outside of China.

Globally, smartphone sales fell 23% compared to a year ago. Reports also revealed that budget and mid-range phones have declined in sales more than of premium handsets.

According to the survey, only Latin America recorded a drop in the average sales value of smartphones, with the average standing at USA $ 166 in the second fiscal quarter of 2020. The increasing demand for education, work, games, and entertainment is also a factor in users' preference for high-end smartphones.

Overall, due to the economic impact and the closure of offline retail stores, the market's demand for low-cost devices has decreased.

China was the country that most contributed to the increase in the average sale price of cell phones.

That is despite overall smartphone shipments declining 23 per cent YoY and overall revenue down 15pc, mainly as a result of the coronavirus pandemic. Notably, Apple also captured around 59 per cent of the global smartphone industry profit in Q2 2020. Once this happens, and 5G appears on lower models, it will be quite interesting to see how the proportion changes.

Other reports by Click Lancashire

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