The beginning of the second quarter of 2020 was looking very bleak for the German smartphone market. Sales have been in constant decline throughout Q1 and they’ve reached their lowest point at the beginning of April due to low demand caused by the COVID-19 pandemic. Total smartphone sales in Germany were 27% lower compared to a year before and a whopping 50% lower compared to Q4 2019, but thankfully the market has bounced back and Samsung was able to maintain leadership.
In fact, Samsung was able to increase its market share by 1% year-on-year in Q2 2020, according to Counterpoint Research. The company had 37% share of the market and was followed by Apple with 23%. Apple also increased its market share in Germany by a significant 7%, but it has done so at the expense of Huawei and other brands.
The market had a greater focus on mid-range phones
Unsurprisingly given the economic climate in Q2 2020, demand for premium smartphones in Germany declined and the $800-and-above segment accounted for only 7% of all sales. Physical shops were shut down and consumer spending, in general, declined by 10.9% across the nation.
The pandemic had a similar effect on the budget smartphone market as well. The low-end segment (below $200) covered 26% of smartphone sales in Q2 2020, down from 31% in Q2 2019, and likewise, the $200-$299 segment covered 15% of sales, down from 28% a year ago.
Interestingly enough, the mid-range segment including phones priced between $300 and $599 became the main focus for consumers. The majority of smartphones sold in Germany throughout Q2 were in this price point. The mid-range market had covered 30% of sales, up from 15% a year before.
The Galaxy A71 was apparently one of Samsung’s most successful smartphones and has helped the mid-range segment remain healthy, according to Counterpoint Research. Meanwhile, the Galaxy S20 series was hit hard by the pandemic right after its launch.
Sales figures have started recovering at the beginning of April and the research firm expects they will rebound in the third quarter of the year.