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China Could See Smartphone Shipments Grow in 2020 Amid 5G Push

By Ding Yi / Dec 17, 2019 05:19 PM / Business & Tech

After three consecutive years of market contraction, China’s smartphone shipments are expected to turn around in 2020, helped by the country’s ambitious 5G plans.

That is the message from market intelligence firm IDC’s latest forecast report, which says the country’s smartphone shipments are likely to grow 0.7% next year, when smartphone makers will be scrambling to unveil 5G compatible handsets.

5G smartphones priced blow 2,000 yuan ($286) could become a major selling point for handset vendors trying to attract consumers in China, possibly accounting for more than 20% of total shipments in 2020, the report shows.

As China increases 5G network coverage, capable of transferring massive data very quickly, an increasing number of smartphone manufacturers could pay more attention to optimizing their phones’ video recording functions in 2020, according to the report. More than 50% of handset makers are also expected to introduce upgraded video editing software compatible with third-party video sharing platforms to improve user experience over the next two years, IDC says.

In addition, the demand for 5G smartphones in megacities could lead to a second-hand market in smaller less developed cities forming, where non-5G phones could be a better choice for local consumers, the report adds.

So far, some Chinese smartphone makers, from well-known Huawei to lesser-known Realme, have launched or teased 5G smartphones models.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Realme Bets Big On China 5G Push in Hope of Repeating India Success

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