© Apple Analysis | November 29, 2019
Global smartphone production volume grows 9.2% in 3Q19
According to TrendForce, in an effort to meet the market’s stock-up demand in the peak season, total production volume for smartphone brands in 3Q19 is estimated at 375 million units, a 9.2 growth QoQ.
The top six positions are Samsung, Huawei, Apple, OPPO, Xiaomi, and Vivo, which accounted for 78% of global market share. Although the seasonality-driven performance is likely to continue in 4Q19, market demand is expected to weaken in 1Q20 because brands have become more meticulous in inventory control, and because the smartphone market has entered a wait-and-see stage as 5G products emerge. In light of these factors, TrendForce believes that brands will adopt relatively conservative production plans in 4Q19, with total production volume of 370 million units, a slight decline QoQ. The industry’s yearly performance is impacted by several factors. The China-U.S. tariff disputes and the U.S. ban of Huawei both caused the market to be unstable. Furthermore, owing to the product maturity of smartphones, brand differentiation becomes increasingly difficult, and the replacement demand is weaker than in the past. The overall quarterly performances this year are worse than the same periods from last year. The total production volume of 2019 is projected to be 1.4 billion units, a 4%-5% decrease YoY. As increased share in the Chinese market strengthened Huawei’s 3Q19 performance, Apple led the pack in terms of quarterly growth thanks to new models Samsung topped the ranking with a production volume of 78.1 million units in 3Q19, a 4.8% growth YoY. Samsung benefitted from Huawei’s weakened sales in the European and American markets and from the successful launch of its A-series smartphones, which allowed the brand to be competitive in overseas markets, such as Southeast Asia, against Chinese brands, which placed a heavy emphasis on high specifications. However, as the R&D capabilities of cellphone manufacturers improve across the board, the differences between them become less and less apparent. As a result, Samsung is increasingly careful in its overall strategy. Aside from product planning, Samsung started to assign OEM production this year to enhance its cost competitiveness. Huawei secured the number two spot by producing 67.5 million units in 3Q19, a 13.4% growth QoQ, owing to its increased share in the Chinese domestic market. In the overseas market, the company was able to stabilize its sales figures after the U.S.-imposed ban was announced in May. Huawei is yet to be removed from the Entity List in 4Q19, which will pose great difficulties for its overseas expansion with new phones. Fortunately for Huawei, the ban does not affect sales of old models released before May, so they are expected to continue to contribute to sales. Huawei’s 4Q19 production volume is projected to reach nearly 55 million units, while China-U.S. relations remain the largest variable affecting Huawei’s future performance. Apple remained in the third place and shook off disappointments from a weak 2Q19 by recording a production volume of 46.7 million units in 3Q19, a 42% growth QoQ (the highest among all smartphone manufacturers). The company made several strategic breakthroughs with its iPhone 11 series, including a new pricing scheme for the non-American market and new trade-in policies. On the technical side, the iPhone 11 series featured new colors, triple camera, better photo quality, and longer battery life, all of which drove up global sales. Thanks to the continued popularities of its new phones, Apple’s production volume is projected to peak at about 69 million units in 4Q19, with the iPhone 11 series accounting for 77% of this figure. OPPO, Vivo, and Xiaomi strive to maintain domestic presence while expanding overseas As in the previous quarter, the fourth to sixth places are occupied by OPPO, Xiaomi, and Vivo, respectively. These brands’ shares in the Chinese market have been compressed by Huawei, while confronting a hypercompetitive overseas market. As a result, the three brands shared the common goal of maintaining their domestic market share while making breakthroughs in their stagnant overseas development. OPPO Group (including OPPO, Realme, and OnePlus), aided by the rising 3Q19 demand in the Southeastern Asian market, registered a production volume of 39.2 million units, a 23% growth YoY. In addition to OPPO-branded phones, Realme and OnePlus both benefitted from their online sales focus and recently notched increased market shares. Fifth-place Xiaomi benefitted from the arrival of peak season and reached total production volume of 32.5 million units, a 5.5% growth QoQ, with its primary markets being China, India, and other overseas regions. Recently, Xiaomi has been investing in new innovations such as better camera performance, 5G, and under-display fingerprint performance, transforming its long-established brand identity of affordable phones in the process. Xiaomi will place heavy emphasis on the development of its flagship Mi series, highly cost-effective Redmi series, and the cooperation smartphones with Meitu. Sixth-place Vivo has been focusing its latest efforts on integrating new technology such as 5G, enhanced image quality, and extremely narrow bezels, in addition to bolstering its entire lineup across all price points. Since up to 70% of Vivo sales originated from the Chinese market, the increase in seasonality-induced shipment was not especially noticeable, owing to Huawei’s increasing dominance in the domestic market. Vivo’s total production volume in 3Q19 maintained its 2Q19 levels, at 28 million units. Chinese Brands Will Occupy about 60% of the Emerging 5G Smartphone Market in 2020 The mass release of 5G phones seems imminent in 2020. As the Chinese government actively pushes for 5G commercialization, Chinese brands will occupy significant portions of the 5G smartphone market. In the 2020 global smartphone market, 5G smartphones are expected to have a 15% penetration rate, with Chinese-branded phones taking up approximately 60% of the 5G market.
For more information visit TrendForce.
For more information visit TrendForce.
U.S. polysilicon makers laud Phase 1 of China deal The United States’ three remaining manufacturers of polysilicon expressed appreciation to President Trump and praised U.S. negotiators for securing the Chinese commitment to purchase U.S. polysilicon in the first phase of the U.S.-China trade deal.
Dupont explores divestiture of electronics unit Following its recent USD 26.2 billion deal to sell off its nutrition business, DuPont de Nemours Inc. is weighing a divestiture of its electronics unit, according to people familiar with the matter.
AMD bolsters exec leadership team AMD has announced several promotions and one new hire to its senior leadership team, in an effort to enable the company’s continued growth in the high-performance computing, graphics and visualization technologies market.
Webasto opens new battery centre in Jiaxing Webasto has inaugurated its new roof plant and battery center in Jiaxing (Zhejiang Province) close to Shanghai.
Panasonic to expand its manufacturing footprint in India Panasonic is looking to build a new wiring device factory in southern India. The new factory is scheduled to start production in autumn 2021, responding to the increased demand in the country.
Season Group strengthens wireless R&D & manufacturing capability Season Group has invested in, and installed, two high-speed and high-precision wireless communication testers - Rohde & Schwarz’s R&S CMW500 Wideband Radio Communication Tester and R&S CMW100 Communications Manufacturing Test Set.
Rocket Lab expands capabilities in So Cal Rocket Lab announced this week it will open a new facility to serve as its corporate headquarters and provide increased production capacity.
PCB Piezotronics unveils new clean rooms PCB Piezotronics Inc., a wholly owned subsidiary of MTS Systems Corporation, has announced the completion of environmentally controlled clean rooms at their DePew, New York facility.
European loudspeaker company brings production back home Difficulties manufacturing smaller design series among reasons for the decision to return back to base.
China only region to register pure-play foundry market growth Rise of China-based fabless IC suppliers offers increased opportunities for foundries, IC Insights states in a recent report.
Mycronic receives first SLX order Swedish production equipment specialist, Mycronic, has recieved their very first order of its mask writer SLX.
600 new German jobs as VARTA expands production again The lithium-ion battery market continues to experiencing growth, currently the market is poised to continue to move forward with an annual growth of about 30% – and VARTA wants a big piece of the pie.
FTG achieves S9100D certification at acquired PCB fab Firan Technology Group Corporation has completed and received AS9100D Certification from SAI Global Ltd. for its recently acquired PCB manufacturing facility located in Fredericksburg, Virginia USA (formerly Colonial Circuits Inc.).
Dutch block sale of technology, China miffed Following ASML’s denial of an export license by the Dutch government to sell a piece of critical chip-making technology to the Chinese, China’s ambassador to the Netherlands has issued a statement expressing his country’s displeasure.
DuPont aids S. Korea in photoresist shortage The office of Korea’s Ministry of Trade, Industry, Sung Yun-mo, met with DuPont President Jon Kemp last week to confirm DuPont’s investment in the country’s need for diversification of its EUV photoresist supply.
Volvo building U.S. battery assembly plant In preparation for bringing a new line of electric vehicles to the U.S. market, Volvo announced it will build a battery assembly plant at its existing facility in Ridgeville, South Carolina.
New game consoles expected to trigger demand surge for graphics DRAM and SSD's TrendForce expects the year-end release of new generation game consoles to trigger a demand surge of graphics DRAM and SSD's during the second half of 2020.
A new year begins with new machinery at Swedish Microwave In Motala, Sweden sits Europe’s oldest manufacturer of Low Noise Block down-converters (LNB) for the global satellite market, namely Swedish Microwave (SMW). The company is now kicking off 2020 with an investment in production.
Lucid eyeing April reveal of pre-production sedan Luxury EV manufacturer Lucid has announced that production is underway in Silicon Valley of 80 beta prototypes of its luxury sedan, Lucid Air, to be unveiled in April in New York City.
Ideal Industries moving the ball forward at Cree Following its March announcement that Cree had sold off the entirety of its lighting business to Ideal Industries in a USD 310 million deal, Ideal said it would remain dedicated to pumping investment dollars into the now privately-held Cree Lighting.
Former pSemi exec and CEO Jim Cable retires pSemi Corporation has announced the retirement of former CEO and long-term executive Jim Cable.
Rohde & Schwarz inks agreement to use Benchmark's muscles The German electronics group has signed a strategic agreement with US EMS provider, Benchmark Electronics, to enhance its manufacturing capacities.
Stoneridge appoints new VP of operations Stoneridge Inc. has announced Kevin Heigel as its new vice president of operations.
Gartner: Worldwide semiconductor revenue declined 11.9% in 2019 Intel reclaimed top spot in global semiconductor market; Samsung moved to no. 2.Load more news