Apple and Huawei are likely to share 88% of 5G smartphone market in China

Apple could take a significant part of the Chinese 5G smartphone market, claims IDC. There are two main reasons which assure that China continues to lead the global 5G market.

The first is China’s 5G terminal pricing strategy is more aggressive and the coverage of countries mainstream price segment user groups is greater and wider.

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The data from IDC shows that, in Q2, 2020 the average price of the 5G mobile phones in the international market is $837. Meanwhile, in China, the average price is only $464. The iPhone 12 comes above the $600 price range where Apple and Huawei each account for approx. 44% of the market.

With the increased growth of the 5G mobile phones in China, the demand for the higher-end 5G mobiles has grown since last year.

In the first half of 2020, the number of smartphones in the Chinese market with a price segment of above $600 was about 23.5 million units. IDC claims that Apple can still occupy more than 40% of the market.

Apple’s new 5G iPhones will come in the price range between $699 to $1099. iPhone Mini is likely to be more popular among all the four iPhones due to its low price. Apart from pricing the design is similar to iPhone 7 and 8 and it will be easy to grip. Most of the users are most likely to go for iPhone 12 Mini.

The global 5G mobile phone shipment will account for about 240 million units in 2020. Out of which 160 million will contribute to the Chinese market, which is 67.7%. China could occupy about 50% of the market share in the next 5 years, according to IDC.

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