Apple made nearly as much money as Samsung and Huawei combined in Q2 despite lower iPhone sales

Apple made nearly as much money as Samsung and Huawei combined in Q2 despite lower iPhone sales
The global smartphone market shrank 23 percent year on year during the second quarter of 2020, with revenue plummeting 15 percent. 

Despite that, the average selling price (ASP) of smartphones actually increased by 10 percent when compared to the same period last year. Analytics firm Counterpoint has chalked that up to the resilience shown by the premium segment, which didn't take as much of a hit from the pandemic as other categories.

Overall, sales of high-end phones declined 8 percent when compared to the year-ago quarter, which is less than the average decline. 

Most of the world was sheltering in place during Q2, which increased people's dependency on their smartphones. Counterpoint believes this led some consumers to upgrade their phones for better user experience. 

During Q2, most 5G-enabled phones on the market were premium devices

An increase in the sales of 5G-enabled phones may also have played a part in cushioning the impact of COVID-19 on high-end phones. Even though overall sales declined, 5G shipments grew more than 43 percent sequentially during the quarter. The growth was primarily fueled by China, which accounted for more than three-quarters of 5G shipments. At that time, China was already recovering from the pandemic. 

Although 5G phones made up 10 percent of global handset shipments, they contributed to 20 percent of the total revenue. That's because most 5G-ready phones on the market in Q2 2020 were flagship devices. 

China contributed to 72 percent of the global 5G revenue and 34 percent of overall smartphone revenue during the quarter.

Huawei sold the most phones during the quarter, followed by Samsung

Most of the growth in China was driven by Huawei, which also explains why it was able to edge past Samsung during the April-June period to become the largest handset vendor by volume. The company also accounted for 20 percent of the global revenue. 

Samsung, on the other hand, was responsible for 17 percent of total revenue. The chaebol saw a 29 percent year over year decline in sales as most of its key markets went into lockdown during the quarter. 

iPhone revenue grew in all markets

Apple, which was the third-largest player in terms of shipment volume, made the most money in Q2 2020. That's because it was the most favored brand in the premium segment and grew iPhone sales 3 percent year on year. iPhone revenue also climbed 2 percent when compared to the year-ago quarter.

Apple captured 34 percent of global smartphone revenue and 59 percent of the industry profit in Q2. The company did particularly well in China, with sales growth of 32 percent, which made it the fastest growing OEM in the country.

The performance could largely be attributed to sustained demand for the iPhone 11 and promising performance by the iPhone SE

Apple is expected to announced its first 5G iPhone, the iPhone 12 next month and analysts believe the company has a real shot at reaching iPhone 6-esque success with the new offerings. 

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