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Counterpoint: Premium Smartphones helped Global Average Selling Price increase by 10% in Q2 2020

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Gadgets like Smartphones, tablets are the need of the hour particularly when users are still studying and working from home. However, the global smartphone market faced a decline due to COVID-19 problems when compared to 2019. It will likely revive only by 2022. Accordingly, a recent report by Counterpoint indicates that the wholesale Average Selling Price(ASP) of the global smartphone market increased by 10% despite a decline in shipments.

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As per the report, regions like APAC, China, Europe, MEA, North America contributed to the overall 10% YoY increase in ASP in Q2 2020. However, Latin America is the only country where ASP decreased YoY by 5%. Although COVID had an impact on the overall market, the premium segment didn’t slope down aggressively. It faced only an 8% decline YoY compared to the overall market decline. That said, the reason for this less economic impact on premium smartphone users.

ASP growth Q2 2020 Credit: Counterpoint

Editor’s Pick: Counterpoint data shows Apple is still king of premium phones and North America remains a goldmine

Accordingly, Counterpoint says that Apple gained the most with a 3% YoY increase in shipments and 2% YoY in iPhone revenue. Also, the 5G shipments added to the growth of ASP. Overall shipments of 5G devices as of Q2 are 10% of the total but it takes 20% of revenue. This is because many 5G phones in Q2 like the OnePlus 8 series, Samsung’s S & A series in the premium segment sold well. An increase in demand for education, work, gaming, entertainment is also said to be a factor for users’ liking towards premium phones.

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Of all, China is the largest contributor of 5G. 72% of the shipments are from China most of which is contributed by Huawei. Consequently, it takes the top spot with about a 13% YoY increase of ASP as of Q2 2020. In spite of hurdles like the US sanctions, China showed a great potential because it recovered quickly from COVID-19 when others are still facing the heat.

However, budget devices performed sluggish due to extension of lockdown, closure of offline stores, less attraction, and caution among low-middle class people. To sum up, the demand for premium phones with contributions from 5G increased the overall ASP of the global market. That said, the report says global shipments revenue shares for Q2 2020 are split between Apple, Samsung, Huawei, Vivo, Oppo. And they captured 34%, 17%, 20%, 7% ,6% ,16% respectively.

Up Next: Indian Smartphone Market sees a massive decline of 50.6% YoY in Q2 2020, expected to recover in H2

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