70% of smartphones shipped in the US during the second quarter were made in China

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Distributors increased orders for ultra-low-end Android smartphones from lesser-known China made smartphones like Unimax and Wiko to match the tight consumer budgets and limited spending power of the Americans after millions of them lost their jobs and US unemployment rate crossed record high amid COVID19. Around 70% smartphones shipped in […]

Distributors increased orders for ultra-low-end Android smartphones from lesser-known China made smartphones like Unimax and Wiko to match the tight consumer budgets and limited spending power of the Americans after millions of them lost their jobs and US unemployment rate crossed record high amid COVID19.

Around 70% smartphones shipped in the US during second quarter this year were made in China, says Canalys, a market analyst firm.

The number of China-made smartphones shipped in the world’s third largest smartphone market surged 10 points from 60% during the first three months of the year. The total smartphones shipped in the United States in the second quarter jumped 11% to 31.9 million from the previous quarter.

“Resumption of Chinese factory operations at the end of March and stores reopening in May and June were key contributors to sequential market growth,” Canalys said.

The federally-subsidized Lifeline program provides discounted phones for low-income Americans. Distributors increased orders for ultra-low-end Android smartphones from lesser-known China made smartphones like Unimax and Wiko to match the tight consumer budgets and limited spending power of the Americans after millions of them lost their jobs and US unemployment rate crossed record high amid COVID19.

“Greater unemployment has cut consumer choice, in some cases restricting the ability to buy a new device or cover phone-related expenses,” said Vincent Thielke, Canalys Analyst based out of US.

The average price of a smartphone in the US slashed 10% to hit $503 from the same period a year ago.

With economic challenges likely to persist, the sub $400 segment is poised to gain more prominence, as other Android players increase their exposure to the low-end and mid-range segments, he said.

Tensions between the US and China have escalated in recent years, creating a perpetual state of uncertainty for all smartphone vendors except Samsung and LG, that shipped the most number of smartphones in the US after Apple, Canalys said.

Apple and Samsung accounted for seven out of every 10 devices sold. Apple set a new domestic record in the quarter, shipping 15 million iPhones and taking the top spot.

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