Key Takeaways:

• Global Handset Sell-through Dropped due to Lockdown across Various Countries
  • April sell through fell almost 25% in April compared to March as sales were driven down to close to zero in countries like India.
  • Sell in was also low and fell more than 20% as well compared to March. Production facilities in India produced zero handsets and smartphones.
  • US sales continued to fall in April but markets like China showed stabilization and recent weeks have shown uptick.
  • Western Europe, Russia, LATAM all showed huge drops in sales. We think the inventory situation is better but there is a chance of a mismatch as some products like iPhone SE 2020 is in high demand and shortage while older 4G devices are showing high inventory.
• Huawei Market Share Increased as Chinese Market Stabilized
  • Samsung sell-through volumes dropped by 29% MoM in April caused by complete lockdown in India and lower demand of S20 Series amid the COVID-19 pandemic.
  • Apple sell-through dropped by 19% MoM in April due to closed retail stores in the US market till early May. In China, Apple sell through grew 24% MoM and 11% YoY. The strong performance of iPhone 11 helped the brand.
  • Huawei smartphone market share saw a jump from 17% in March to 21% in April. It was driven by Huawei’s strong presence in China market which steadily recovering since March. China market contributed 76% to the total sales of Huawei in April 2020.
• 5G Smartphone Offerings are Increasing across Price Points
  • The $300-$399 and $600-$799 wholesale price band witnessed MoM market share growth. The entry-level and budget segment smartphone volumes dropped as most of the emerging markets like India were on lockdown due to COVID-19 pandemic.
  • 40+ 5G smartphones were present In the market during April. The number of 5G smartphones are increasing monthly which are mostly present in the China market.
  • 5G smartphones such as Vivo S6 5G and Xiaomi K30 5G penetrated the sub-$300 segment.

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