Service: Market Pulse

Overview:

• Sales grow in most regions driven by promotions, sell-in increases ahead of the holiday season
  • Global Handset sales declined 2% MoM in December. China, parts SEA, LA, MEA and Europe all grew driven by the Singles day and Black Friday sales. However, India declined sharply post the festive season in October which drove the market down. Market in US also remained flat MoM, as Apple supply, although improving, remains tight. 
  • Shipments improved MoM and was higher than sales in November. Supply for Apple improved and is likely to improve further in December. Other OEMs also built up some inventory for the sales season in November and December. Sell-in was also higher as many factories close early in December due to holidays and increased production to maintain sufficient inventory. However, shortages continue, and some demand is likely to shift to Q1 2022.
• Apple continues to be #1 Smartphone OEM Globally; Xiaomi enter top 3 in China; Slow start to Jio’s smartphone sales
  • Apple’s share increased further in Nov as it continued to be the #1 OEM Globally as well as in China. It also surpassed Samsung to become the #1 OEM in Europe with sales growing 19% MoM in the region. The increase in share could have been more, if it was not for the lower-than-expected sales in the US because of shortages. Sales in Japan was also affected because of the sim-lock ban imposed by the government.
  • Xiaomi held its share in November. The 37% MoM decline in India post the festive season was offset by a 61% MoM increase in China. Due to its online focus, Xiaomi was the biggest gainer in China’s Singles day sales, which is largely an e-commerce event. China’s top three spots reshuffled again with Xiaomi surpassing OPPO to become the third largest brand in China in November.
  • Jio’s most anticipated smartphone, JioPhone Next went on sales in India in November. Jio was able to capture ~3% of the Indian smartphone market in Nov. The sales were slow primarily because of higher-than-expected price point.
• Apple dominates the US$600-US$799 Price Band, Samsung gains in ultra-premium (US$800 and above)
  • The US$600-US$799 price band gained share in November driven by the iPhone 13, which alone captured close to half of the price-band’s total sales. Apple was the biggest gainer in this price segment, capturing over three-fourths share. The iPhone 13 continued to be the highest selling model globally in November. It also surpassed the iPhone 13 Pro Max to become the highest selling model in the US as well in November.
  • Early adopters prefer the higher-end Pro models and iPhone 13 seems to be picking up now. Also, the availability of iPhone 13 is better than those of pro models.
  • Samsung gained share in the ultra-premium (US$ 800 and above) price segment, driven by the demand for Samsung’s foldables during the Black Friday sales and the improved availability of the S21 series.

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: January 2022

Overview:

• Apple & Indian festival sales drive global sales; Supply shortages continue for all OEMs
  • The global smartphone market grew 8% MoM driven by the growth of Apple and the festive season sales in India. India's market grew 46% MoM driven by promotions, with brands depleting their excess inventory from September.
  • Sell-in also grew and was higher than sell-through for October. Sell-in in China grew as OEMs filled channels ahead of the singles day sales in November. South-East Asia market also continued to improve post-COVID lockdowns. Sell-in in the MEA market also increased as OEMs somewhat normalized supply, following the shortages during the last quarter. However, overall, demand continued to outstrip supply for all OEMs. Lower-tier 4G devices experienced more shortages as the supply chain prioritized higher-end and higher-margin products in several markets.
• Apple takes top spot globally and in China; Samsung continues to recover
  • Apple sales grew 17% MoM, as it surpassed Samsung to become the largest brand globally in October 2021. Sales could have grown more if it were not for shortages that held back key markets for Apple like the US. The Apple iPhone 13 became the best-selling model globally in October.
  • Apple became the #1 OEM in China for the first time ever. Apple is best positioned to capture the gap left by Huawei in the premium segment as other brands like Xiaomi, OPPO, vivo fail to develop sufficient brand power to command high prices. Apple was also the fastest growing brand in India as its sales crossed the million mark for the first time.
  • Samsung’s sales also recovered 7% MoM as supply across all regions improved. Supply restored in regions like MEA which saw severe shortages for Samsung in Q3. Sales in Europe, SEA, LA and India also grew for Samsung.
• Apple dominates the rise of the ultra-premium segment, while the share of sub-US$200 segment also increases
  • The ultra-premium segment continued to increase further in October driven by iPhone 13 sales. The share for Apple within the segment reached around 85% globally and over 90% in the US. The Pro models continue to be in high demand with supply remaining short. iPhone 13 was the best-selling model in the US$800 and above price segment globally.
  • The less than US$200 price band share increased during the month. This was driven by festive season sales in India. Over 70% of sales in the India market in October were within this price segment.
  • Samsung and Xiaomi both gained share in the US$100-US$199 segment. The Galaxy A12 was the best-selling model in the segment followed by the Galaxy M12. The Samsung Galaxy A12 was also the best-selling Android smartphone globally for third consecutive month.

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: December 2021

Overview:

• Demand continues to outstrip supply, Sell in improves in August
  • Global smartphone market sales declined slightly month-on-month in September, mainly because of China’s continued slow down and the effect of component shortages. India market also remained slow as consumers hold withheld purchasing ahead of the festive season. By contrast US, Japan and Western Europe all grew driven by the launch of the iPhone 13 series. Apple continued to navigate through the shortages much better than other OEMs.  
  • Sell-in also surged in September mainly driven by the launch of the Apple’s new iPhone series, the channel fills in India before the festive season and the recovery of the SEA market following relaxations in COVID restrictions. However, overall, the demand continues to be higher than supply. OEMs like Xiaomi faced severe shortages, which affected its sales. The shortages will continue in the coming months. Several OEMs are increasing device prices in response to more expensive components and other increased costs, for example transportation.
• Apple becomes the second largest brand in September, Xiaomi declines due to shortages
  • Apple sales grew 36% MoM, as it surpassed Xiaomi to become the second largest brand Globally in September as well as in Q3 2021. This was driven by the successful launch of the iPhone 13 series. Apple remained most immune to shortages as compared to other OEMs.
  • Apple’s sales grew across almost all the regions and demand outstripped supply in the regions like the US, where lead time for Pro version remain in range of 4 to 6 weeks.
  • Xiaomi’s sales declined sharply in September, and market share reduced to 10% due to the impact of component shortages. Demand was higher than supply for Xiaomi in regions like SEA. In terms of shipments, Xiaomi prioritized India market in September to fill channels ahead of the festive season in the first week of October.
• Ultra-premium segment share increases significantly; Prices of devices continue to rise amidst shortages
  • The ultra-premium segment increased sharply driven by the launch of the iPhone 13 series. The iPhone 13 was the best-selling model globally in the segment followed by the iPhone 13 Pro Max and the iPhone 13. Within the US, the demand for the iPhone 13 Pro Max and Pro was higher than the usual iPhone 13 during the first few days of the launch. Samsung’s share declined in the premium segment, as it faced stiff competition from Apple.
  • OEMs like Xiaomi, OPPO, realme have increased prices of some devices due to rising component prices. Brands are finding ways to manage the situation by relaunching models with different chipsets and tweaking accessories, and other specifications to manage the price impacts.  

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: November 2021

Overview:

• Demand grows marginally; component shortages intensifying
  • Demand grew slightly month on month in August. North America and India grew driven by back-to-school and Independence Day promotions, respectively. China also grew slightly but remains lower than last year, as demand continues to be sluggish. The SEA market declined because of the pandemic. However, the situation in countries like Indonesia is improving and demand is likely to rebound in the coming months.
  • Sell-in was lower than sell-through in August, as shortages for components including Application Processors (AP) is intensifying. The supply-demand mismatch is likely to increase in the coming months as demand recovers and inventory for OEMs is depleted. Component prices are also rising and some of these costs are being transferred to the end consumers.
• Samsung gains as Fold shows promise – Xiaomi declines; HONOR enters top 3 in China
  • Samsung sales grew 12% month on month as its supply situation improved. Initial demand for its foldables was also high, especially for Flip 3. Samsung’s sales in Korea grew 56% MoM as pre-orders for foldables started to be fulfilled in late August. Flip 3 is available for free after trade in in several carrier channels in the US as well. The trade-in deals will also help increase volumes in the secondary market.
  • Xiaomi lost share across markets including Europe, Southeast Asia, LATAM, MEA as Samsung regained sales.
  • HONOR’s sales recovered further in August. It was among the fastest growing players in China (18% MoM) and became the third largest smartphone brand in August driven by the HONOR 50 and the HONOR Play 20. However, sales in markets outside China continued to decline.
• Samsung gains in the ultra-premium segment driven by foldables
  • The ultra-premium segment continued to hold market share. Apple slowed in markets outside the US, and lost share in the segment. However, this was compensated by Samsung’s growth.
  • Samsung gained share within the premium segment driven by the Galaxy Z Flip 3 and the Galaxy Z Fold 3. The Flip 3 became the third highest selling model in the ultra-premium segment in August. The Samsung Galaxy Z Flip 3 outsold the Galaxy Z Fold 3 across all regions.

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: October 2021

Overview:

• Demand declines in July; Shipments recover as Samsung rebounds
  • Demand declined month on month in July. China slowed down after the temporary recovery in June. US and LATAM also declined due to seasonality. Southeast Asia also remained slow because of the pandemic. India grew marginally, driven by promotions in online channels and continued post-COVID pent up demand. 
  • Sell-in rebounded as Samsung’s supply in Vietnam was restored after being hit by lockdowns in June. Shipments in the US also grew as OEMs filled channels before back-to-school promotions. Sell-in could have been higher if it was not for the component shortages.
• Samsung Regains top spot in July; HONOR Recovers; OnePlus enters top 5 in the US
  • Samsung regained its top position in July as shipments from Vietnamese factories were restored after lockdowns in June. However, shortages for A series devices were still seen in markets like the US. If supply is not impacted again due to lockdowns in Vietnam, Samsung’s share is likely to further increase in the coming months.
  • HONOR’s sales grew 26% month on month driven by its recovery in China, where it has become the fourth largest brand in July surpassing Apple. The HONOR 50, launched in June, based on a Qualcomm’s SoC, was the best-selling model for HONOR in July.
• Premium Segment Resilient; US$300 to US$599 share grows; Samsung regains top spot in US$100-US$199
  • The premium segment showed resilience even though Apple sales declined month-on-month. Samsung regained its lost share in July and is likely to further gain share in the premium segment as the momentum for Apple slows and the new Fold series becomes available following its high-profile launch and strong pre-orders.
  • The share for US$300 to US$599 price band grew in July as Samsung sales grew driven by the A52 and A72. OPPO also gained share within the segment driven by the launch of Reno 6 series in multiple markets outside China.
  • Within the US$100 – US$199 price band Samsung regained its top spot after losing it to Xiaomi in May. This was driven by the strong performance of the Galaxy A12, A02s and M12. The Galaxy A12 was the best-selling model for Samsung in July.

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: September 2021

Overview:

• Demand recovers in June; Samsung’s supply hit by COVID-19 in Vietnam; sell-in continues to be lower than sell-through
  • Global smartphone sales rebounded in June, driven by a sharp post-pandemic recovery in India and the 618 shopping festival-triggered recovery in China. However, Southeast Asia was hit by a new COVID 19 wave, affecting both demand and supply. 
  • Samsung’s production was the worst hit in June due to the lockdown in Vietnam, creating a demand-supply mismatch and adding to the woes related to the already ongoing component shortages. This resulted in the smartphone sell-in being lower than the sell-through for June as well. Xiaomi, OPPO and vivo are likely to gain share from Samsung’s decline. 
  • The production in Vietnam is expected to return to normal in July.
• Samsung declines sharply; Xiaomi becomes #1 OEM globally; Apple achieves record second-quarter sales 
  • Samsung’s share declined in June across all regions. This was due to production disruptions in Vietnam because of the COVID-19 lockdown, which added to the ongoing component shortages. As a result, Samsung saw a demand-supply mismatch. It is also facing fierce competition from OPPO, vivo and Xiaomi across regions.
  • Helped by Samsung’s decline, the recovery of China market and continued expansion in the markets outside China, Xiaomi reached its highest ever sales in June, becoming the #1 OEM for the first time ever. It also became the #1 OEM in Eastern Europe in June. 
  • Driven by the strong momentum of the iPhone 12 series, Apple clocked record second-quarter sales in Q2 2021.
• Xiaomi tops $100-$199 and $200-$299 price bands at Samsung’s expense; Ultra-premium cooled down 
  • Impacted by the supply constraints, Samsung lost share across all price bands. Apple gained share in the premium segment, while Xiaomi gained share across all price bands at Samsung’s expense. Xiaomi became the top OEM in the $100-$199 and $200-$299 price bands. 
  • The ultra-premium segment cooled down in June as its share was reduced to single digits (8%). The S21 series was already impacted by the low yield of Samsung’s 5nm process node. The lockdown in Vietnam further added to the decline. Apple sales also declined outside the US and China due to seasonality.

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: August 2021

Overview:

• Demand declines further in May, sell-in lower than sell-through; China inventory at highest level since COVID-19 outbreak
  • Global smartphone sales declined further in May. This was the worst month for India before the beginning of market recovery. Our early market checks suggest a positive outlook and we are expecting a sharp recovery in June.
  • China continued to remain slow, improving marginally month on month. The US and LATAM markets also improved marginally driven by promotions. The COVID-19 cases in the SEA are increasing, prompting lockdowns and a slowdown in the market.
  • Sell-in was lower than sell-through in May. China inventory was at its highest level since the COVID-19 outbreak. The demand-supply gap will soon hit its peak as OEMs are cutting down their aggressive production plans. Component shortages continue and are expected to persist through 2021. The lockdown in Malaysia, where several chip-packaging/testing providers have their units, could intensify the shortages. The Taiwan water crisis is also concerning. If there is no rainfall by August, it will worsen the ongoing semiconductor shortage.
• Xiaomi becomes #1 OEM in Russia; Apple headed for a record second quarter sales
  • Despite a decline in India and China, Xiaomi continued to hold its market share driven by the growth in MEA and SEA regions. Xiaomi surpassed Samsung to become the #1 brand in Russia for the first time, capturing over 30% of the market. The OEM also continued to gain share in AP Others*, surpassing vivo to become the #2 OEM for the first time.
  • Apple continued to hold its market share – its highest ever for the month of May. May is usually a lean period for Apple but despite that, sales grew 4% MoM in the US and 3% MoM in China. The iPhone 12 was the highest-selling model globally. It also surpassed the 12 Pro Max to become the #1 model in the US in May.
• Apple gains strength in $600 and above segment; Samsung regains top position in $300-$599 segment
  • The share of $600 and above price band declined in May but Apple’s share within the band increased driven by the solid performance of the iPhone 12 series in the US and China. In the US, over half of the total smartphone sales in May were in the $600 and above price band. Samsung lost share in the $600 and above band as sales for the S21 cooled down.
  • The $300-$599 price band gained further in May. Samsung, driven by the Galaxy A53, A72 and the S21 5G, surpassed Apple to become the top OEM in the price band. However, overall, the iPhone 11 was the best-selling device in the segment, followed by the SE 2020.

Key Takeaways:

• Global Mobile Handset Market Analysis
• Country-Level Smartphone Market Analysis
• Global Hardware Feature Analysis
• Global Hit Model Analysis

Number of Pages: 41
Published Date: July 2021