US Imported 12.4% Fewer Smartphones in Q2 Than in 2019 Quarter, Says DataWeb

Q2 smartphone imports to the U.S. increased by double digits sequentially from Q1, amid China's supply chain recovery to pre-COVID-19 levels after the pandemic brought factories to a halt in much of February into March. The quarter-to-quarter increase masked subdued smartphone demand attributable to the decline in consumer spending. Year-over-year smartphone imports fell by double digits in Q2, consistent with IDC reporting a 12.6% decrease in second-quarter U.S. handset shipments.

U.S. importers sourced 40.27 million smartphones from all countries in Q2, said new Census Bureau data we accessed Sunday through the International Trade Commission’s DataWeb. Unit imports were up 12% from Q1 but down 12.4% from the 2019 quarter. Dollar smartphone imports were $9.71 billion, a 4.7% increase from Q1, but down 13% from the 2019 quarter. The average Q2 smartphone import was $241.29, little changed from the $242.95 average in the 2019 quarter, 6.3% cheaper than in Q1.

China supplied 75.6% of smartphone unit imports to the U.S. versus 66.4% in Q1. China’s share virtually matched its 75.7% pre-COVID-19 contribution in 2019's Q2. U.S. importers sourced 30.44 million smartphones from China in Q2, 27.4% more units than they imported in Q1, 12.6% fewer than the 2019 quarter. China remained the country of origin for the world’s most expensive smartphones. Its average handset was $262.93, 7.1% cheaper than in Q1, but 9.3% higher than the $240.55 average in the 2019 quarter.

Vietnam remained a country of secondary importance to U.S. smartphone imports in Q2, though in a diminished role from Q1 with the recovery of China’s supply chain. Vietnamese shipments to the U.S. were 7.24 million handsets, 18% of all smartphone imports, down from its 24.8% share in Q1. Unit imports were down 18.8% from Q1 and 2.6% lower than in the 2019 quarter. Vietnam increasingly is a haven for entry-level smartphones at scale. Its average Q2 handset was $162.03, nearly 19% cheaper than in Q1 and 27.2% lower than in the 2019 quarter.

Even cheaper than Vietnam's shipments were smartphone imports from India, at much lower volume. The average Indian import was $132.53, more than 18% less expensive than its Vietnamese counterpart and roughly half the value of the average Chinese import. U.S. importers sourced 1.05 million phones, just under 3% of all smartphone imports to the U.S. India shipped fewer than 145,000 smartphones to the U.S. in the 2019 quarter.