[Asia Economy Reporter Eunmo Koo] Samsung Electronics maintained its No. 1 position in the global smartphone market in the second quarter, but production volume significantly decreased due to disruptions in the production schedule caused by COVID-19. Apple also saw a decline in both market share and ranking as production slowed ahead of new product launches. Meanwhile, China's Oppo and Xiaomi quickly filled the gap left by Huawei, increasing their market shares.
According to market research firm TrendForce on the 2nd (local time), Samsung Electronics' smartphone production volume in the second quarter was 58.5 million units, down 23.5% from the first quarter. Its market share remained at 19.0%, retaining the top spot.
It is analyzed that the worsening COVID-19 situation in India and Vietnam over the past few months led to reduced or temporarily halted production at local factories. TrendForce forecasted that "competition will become even fiercer as competitors' design and manufacturing capabilities continue to improve."
Apple's production volume also decreased by 22.2% from the previous quarter to 42 million units. Its market share dropped to 13.7%, causing its ranking to fall from second to fourth place. Since the iPhone 13 series is scheduled for release this month, production volume in the second quarter, a model transition period, significantly declined. Despite the sluggish second quarter, the launch of four new iPhone 13 models this month is expected to help Apple regain the second position in the third quarter. However, TrendForce added that the worsening COVID-19 situation in countries producing specific components, such as Malaysia, could impact iPhone 13 production.
China's Oppo and Xiaomi tied for second place. Oppo's production volume in the second quarter was 49.5 million units, down 6.6% from the previous quarter, while Xiaomi's was 49.5 million units, down 2%. Although both companies saw a decrease in production compared to the previous quarter, they grew approximately 80% and 70%, respectively, compared to the same period last year. TrendForce stated, "The growth of these two companies is mainly due to absorbing most of the market share lost by Huawei and the recovery of the Chinese smartphone market," adding, "These two brands will pose the biggest threat to Samsung Electronics in the future."
LG Electronics, which officially ended its mobile phone business in April and ceased production from the end of the second quarter, is estimated to produce 9.4 million units this year, accounting for a 1% market share.
Meanwhile, global smartphone production in the second quarter was 307 million units, down 11% from the first quarter. However, it increased by about 10% compared to the same period last year. The total global production volume for the first half of this year is approximately 652 million units, representing about an 18% growth compared to the first half of last year, which was the early stage of the pandemic.
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