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Smartphone Prices Rise during the Pandemic, This Is Why

KOMPAS.com – Like any other industry, industry smartphone also struggled because of the Covid-19 pandemic. Delivery smartphone according to several research firm reports, it has decreased throughout 2020 compared to the same period last year.

However, even though shipments have fallen, according to reports Counterpoint Research, the average selling price (average selling price/ ASP) smartphones actually rose 10 percent globally. This is caused by several factors.

First is the number of retail stores that have closed due to the economic conditions caused by the Covid-19 pandemic, so the demand for cheap cellphones has also decreased.

While on the other hand, the price of a smartphone premium the decline is not that drastic, and the market demand for mobile phones high-end remains the same. The growth of 5G cellphones (especially in China) this quarter also affected the selling price of cellphones.

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It was stated that the premium segment only fell 8 percent year over year (YoY) in the second quarter of 2020 compared to the entire market. Regions such as Asia Pacific, China, Europe, Middle East, and North America contributed to the total ASP increase of 10 percent YoY.

Only the Latin American region experienced a 5 percent decrease in ASP. According to Counterpoint, Apple to be vendor with the highest growth with a 3 percent YoY increase in the number of shipments.

Other than that, Counterpoint also noted the share of 5G networks in improving ASP. Delivery smartphone 5G as a whole in Q2 accounted for 10 percent of total shipments smartphone and contributes 20 percent of total revenue.

That’s mostly because of it smartphone 5G enters the premium segment, such as the Galaxy S and Note series, OnePlus 8 series, and several smartphone Huawei premium.

Request will smartphone premium features are also driven by the need for supporting features for learning and working from home, as well as entertainment features such as gaming and streaming film.

photo" data-photolink="http://tekno.kompas.com/image/2020/09/28/10310057/harga-smartphone-naik-di-masa-pandemi-ini-sebabnya?page=2" style="max-width: 100%;width:750px">Counterpoint Reseacrh Countries that contributed to the increase in the average selling price (ASP) of smartphones in Q2 2020.-

Still from the same report, China became a contributing country smartphone 5G the biggest. 72 percent of the delivery rate smartphone 5G globally comes from China, especially from Huawei.

Also read: Predicted Global Smartphone Market Will Only Recover in 2022

This huge contribution made China the country with the highest ASP increase, around 13 percent YoY in Q2 2020.

Summarized KompasTekno from Gizmo China, Monday (9/28/2020), according to reports Counterpoint, total income smartphone global is ruled by five vendor big.

Respectively, Apple is 34 percent, Samsung 17 percent, Huawei 20 percent, Vivo 7 percent, and Oppo 6 percent. The rest is an accumulation of para vendor others who contributed 16 percent of their income.


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