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Coronavirus could impede 5G smartphone growth, says report

5G Smartphone NEW .jpg

The recent outbreak of the coronavirus could impact or even slow down the supply of 5G smartphones.

According to the latest research from Strategy Analytics, though global 5G smartphone shipments are set to soar this year, the effects of the coronavirus in China could potentially harm this growth, as the manufacturing of 5G phones come from this region.

“Upcoming 5G models from Apple iPhone and other big brands mean 5G will be the hottest part of the worldwide smartphone market this year, said Neil Mawston, executive director at Strategy Analytics. “However, the recent coronavirus scare is currently restricting trade in some parts of China, and this may well cause a slowdown in 5G supply or demand across Asia or worldwide during the first half of 2020. Industry players should be prepared for bumpy 5G sales in some markets.”

In its report, Huawei & Samsung Dominate 5G Smartphone Market in 2019, Strategy Analytics global shipments of 5G smartphones reached 19 million units in 2019. Of this Huawei holds a 37% market share, followed closely by Samsung with a 36% market share.

“Global 5G smartphone shipments grew from zero in 2018 to 18.7 million units in 2019. Demand for 5G smartphones is higher than many expected,” said Ken Hyers, director at Strategy Analytics. “Fierce vendor competition in China and heavy carrier subsidies across South Korea have been the main drivers of 5G demand. Other regions, like the US and Europe, are lagging behind Asia, but we expect them to close the gap later this year.”

Following in third place in Vivo with a 11% market share, after which is Xiaomi in fourth place and LG in fifth place, with market share of 6% and 5% respectively.

“Vivo is number three and shipped 2.0 million 5G smartphones worldwide in 2019, capturing a solid 11% market share. Vivo’s 5G smartphone portfolio is heavily focused on China and that remains its primary market for now,” continued Linda Sui, director at Strategy Analytics. “Xiaomi is number four and shipped 1.2 million 5G smartphones worldwide in 2019, capturing 6% market share. Xiaomi is quietly making headway in Western Europe, with popular models such as the Mi Mix 3 5G, and teaming up with carriers from Switzerland, UK and elsewhere.”

“LG is number three and shipped 0.9 million 5G smartphones worldwide in 2019, capturing 5 percent market share. LG is focusing its efforts on North America and South Korea but has limited presence in the rest of the world for now,” added Woody Oh, director at Strategy Analytics.

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