Average selling point in global smartphone market up 10% in Q2

New Delhi, Sep 25 (SocialNews.XYZ) The wholesale average selling price (ASP) in the global smartphone market increased 10 per cent (year-on-year) in the June quarter even as the shipments declined the highest ever at 23 per cent.

The uptick in 5G shipments contributed to the growth of ASP.

During the quarter, 5G contributed to 10 per cent of the total global handset shipments but contributed to 20 per cent of the total handset revenue since most of the 5G devices in Q2 2020 were in the premium segment.

"China was the largest contributor to 5G sales. Nearly 72 per cent of the global 5G handset revenue came from China. Most of this was driven by the push from Huawei," said Varun Mishra, Research Analyst at Counterpoint.

Overall, the smartphone ASP in China increased 12 per cent (YoY) and the region contributed to over 34 per cent of the global smartphone revenue, highest since 2016.

Overall, the smartphone industry revenue declined 15 per cent (YoY) during the quarter.

The ASPs for all the regions increased except Latin America.

"There was also an increased dependency on mobile phones during the lockdown, with work from home, study at home, productivity applications, gaming, entertainment and other content consumption happening through mobile phones in varying degrees," Mishra added.

On the flip side, the demand for lower price tier models was severely impacted.

Entry-level devices are usually bought offline, and most of the global markets were in some stages of lockdown during Q2 2020.

"Consumer sentiment was also low, with users in the low-middle class avoiding discretionary purchases," the report mentioned.

Within the OEMs, Apple led the global smartphone revenues, capturing one-third of the pie, followed by Huawei and Samsung. Notably, Apple also captured around 59 per cent of the global smartphone industry profit in Q2 2020.

Source: IANS