China captures 46 percent of global sales in 2019 5G disruption ahead

Driven by Huawei, China remained the largest contributor to the global market, 5G, capturing 46% of the total 5G equipment through in 2019, a new report said on Thursday.

Although Samsung 5G led the global sales of more than 40% market share, Huawei (including Honor) alone captured 74% of the 5G sales in China.

“However, the high degree of dependence on the Chinese market, Huawei makes the most vulnerable to the effects of COVID-19 outbreak of the smartphone market,” according to the latest research of the Counter Point ‘Market Pulse Service.’

trade in China’s smart phone market to consumers fell by 8% (yoy) in 2019 – the decline was steeper than the global smartphone market trade to consumers, which decreased by 3% (annualized).

“China handles at least 50% of the world production of smart phones and corona virus outbreak is bound to adversely affect China as well as the global smart phone market,” said Varun Mishra, Research Analyst Counter Point.

There will be caused with the supply of components and production of smart phones, either shut down or running due to a shortage of labor below full capacity.

“The overall demand also dramatically fall due to disturbances in retail. Offline stores the most affected. We are expected to more than 20% decline in net sales in China in Q1 2020, “Mishra added.

OEMs who are most affected are those with manufacturing facilities in Wuhan region such as Lenovo and Motorola, and those for whom China is a major market such as Huawei.

Hardware manufacturers such as Realme, Honor and Xiaomi, which are more dependent on online distribution is likely to affect the least compared to those with a relatively high proportion of offline sales, said Mishra.

While all of the major manufacturers fell – OPPO (decreased by 12% year on year), Vivo (6% annualized), Xiaomi (22% yoy), Apple (26% yoy), Huawei (including Honor) increased by 28% throughout the year, capturing the more than one-third of the world’s largest smartphone market.

Huawei has been aggressive in China prohibition of trade after the United States, which has led to this growth.