Feb 12, 2021 News
After returning to the number one position in 2019, Apple continued to maintain its leading position, with a market share of 11.9%. Samsung Electronics ranked second with an 8.1% share, Huawei third, Lenovo fourth, and Dell fifth. Also, BBK Electronics, Hewlett-Packard, Xiaomi, Hon Hai Precision, and Hewlett-Packard Enterprise are among the top ten.
The report says that the top ten OEMs increased their semiconductor spending by 10% in 2020, accounting for 42% of the total market, higher than 40.9% in 2019. The ranking of the top ten chip buyers in 2020 remains unchanged compared with 2019.
The continued success of AirPods, the extraordinary demand for Mac computers and iPads, and the growth of NAND flash consumption have enabled Apple to maintain its position as the world's largest semiconductor customer.
Gartner Research Director Masatsune Yamaji said that the increased demand for mobile PCs and tablets for home office in 2020 would promote Macs and iPads' production. Starting in the second half of 2020, Apple Mac also began to migrate to the Arm architecture.
The negative impact of the US ban on Huawei has become more pronounced. In 2020, it will significantly reduce its semiconductor spending, which is a decrease of 23.5% from 2019. It is also the largest decline among the top ten buyers. Masatsune Yamaji explained that as the US government strengthened its sanctions against Huawei in 2020, it has restricted its ability to purchase chips, limiting the supply of its smartphones and reducing its market share. "However, as other Chinese smartphone manufacturers fill up this market left by Huawei, the Chinese market remains vital to semiconductor suppliers."
Among the top ten semiconductor buyers globally, Xiaomi's spending on semiconductors has increased the most, with an increase of 26% in 2020 compared to 2019. Masatsune believes that Xiaomi's smartphone business will be the least affected under the new crown pneumonia epidemic, which is mainly attributed to the sales model promoted by its online channels. "The sanctions on Huawei have enabled Xiaomi to gain more market share in the smartphone market. At the same time, Xiaomi's success in various IoT devices, including smart TVs, wearable devices, and smart home appliances, has also increased. Its semiconductor spending in 2020." In the fourth quarter of 2020, Xiaomi's domestic market shipments increased by 48%.
Masatsune Yamaji believes that two main factors affect OEM's semiconductor spending in 2020, namely the new crown pneumonia epidemic and the Sino-US trade conflict. "The epidemic has weakened the demand for 5G mobile phones and interrupted car production, but it has driven demand for mobile PCs and games, as well as investment in data centers."
Also, the increase in memory prices in 2020 will cause OEMs to increase semiconductor spending.