Asia Express - Mobile Communications
Chinese 5G Smartphone Shipments Did Not Live Up to Expectations in June
July 13, 2020

Chinese 5G smartphone shipment volume reached 17.5 million units in June 2020 alone, with a penetration rate of 61%, according to a report released by the CAICT (China Academy of Information and Communications Technology). However, shipment volume of total smartphones only managed to reach 28.6 million units in the same month, down 15% year-on-year and month-on-month. This indicates growth momentum from Chinese 5G smartphones did not live up to expectations. The decline was attributed mainly to high prices of 5G phones which are normally priced at over 2,000 RMB (US$290.4). In April, the Chinese mobile phone shipments reached 41.7 million units, the highest volume in 30 months. In June, the increase in 5G phone sales could not make up the loss in 4G phone sales. As a result, sales of Huawei, Oppo, Vivo, and Xiaomi 5G phones all declined in June. Besides high prices, the still low 5G network penetration rate also plays a detrimental factor when persuading consumers to shift from 4G to 5G phones in China. Shipment volume of the global smartphone industry is anticipated to have reached 260 million units in the second quarter of 2020 alone, down 26.7% year-on-year and 6.6% sequentially, according to MIC (Market Intelligence & Consulting Institute), a government think tank and IT research institute in Taiwan. MIC stated that the decline was mainly attributed to the continued COVID-19 pandemic and US’ further restrictions on exports to Huawei.