• Low- and mid-end devices drive recovery
• Q4 to maintain momentum, led by iPhone 12
Japan’s smartphone market showed clear signs of recovery in Q3 2020 after theCOVID-induced low point in the previous quarter, according to Counterpoint’s Japan handset tracker. Smartphone sales plummeted 24% YoY in Q2 2020 but went up 10% YoY in the following quarter.
Japan reported an average of 600 daily new cases during the first wave ofCOVID-19年3月,但这些每升至1000上方day during the second wave in August. Despite this, the smartphone market managed to rebound and return to the pre-viruslevels. This rapid recovery was driven by thelatest iPhone SEand many other mid-and low-end smartphones aimed at increasingly cost-sensitive consumers. Moreover, the country’s overall consumer sentiment started to improve slowly in Q3 2020 as the Japanese government avoided strict measures that would have impacted the economy.
Exhibit 1: Japan Smartphone Unit Sales
Apple lost share due to delayed launch ofnew iPhone
Apple, the top smartphone player in Japan, saw its market share decline to 45% in Q3 2020 from 50% a year ago due to the delayediPhone 12launch. Samsung fared well, with its market share increasing from 5% in Q3 2019 to 8% in Q3 2020, driven by the Galaxy A20 and other A-series models. OPPO was another brand that saw a gradual expansion, with its market share increasing from 2% in Q3 2019 to 5% in Q3 2020.
Apple’s iPhone sales were driven by theiPhone SE 2020, which solely captured 26% of the total market in Q3 2020. TheiPhone SE 2020offers compact design — appealing to the iPhone users who prefer small displays with new hardware — at low prices. The combination of these attractive features led to remarkable results in the wake of thepandemic.
Exhibit 2: Japan Smartphone Brand Share
Low and mid segments eye new growth opportunity
The Japanese smartphone market in Q3 2020 saw the premium segment contract, but the low and mid segments expanded. The sub-$150 price band jumped from 5% in Q3 2019 to 19% in Q3 2020, helped by the Samsung Galaxy A20 and Fujitsu Arrows Be4. In contrast, the $600 and above band plunged from 35% in Q3 2019 to 18% in Q3 2020. There were some favorable developments that took place in the low and mid segments, like Apple’siPhone SE 2020performing well and Samsung and OPPO introducing a wide range of devices. Premium smartphones have dominated Japan’s market for past several years. Thepandemicoffered a new opportunity for the low and mid segments to lead the overall market.
Exhibit 3: Japan Smartphone Price Band Share
Q4 outlook: Apple to drive Japan market withiPhone 12
We expect Q4 2020 to maintain momentum, led by theiPhone 12, which was released during this quarter. TheiPhone 12’sinitial sales have been strong, signaling its Q4 sales will outperform those of the iPhone 11. We see multiple factors in play for the potential success of theiPhone 12–the first 5G iPhone, pent-up demand created by thepandemic, and a large number of iPhone users wanting to replace their devices.
