Thursday, 22 November, 2018

Samsung smartphone share down again as Chinese brands surge

Q3 2018 smartphone shipments are in: how much longer before Huawei claims top spot? Smartphone market slowed down in Q3 but Chinese makers flourished - GSMArena.com news
Sherri Watson | 04 November, 2018, 16:11

Counterpoint Research released earlier today the latest report on global smartphone shipments. Counterpoint estimates that 386.8 million phones were shipped globally in Q3 of 2018, down 3% from Q3 of 2017, while IDC estimates the decline at 6%.

The researchers said a slowdown in China is a major factor in the slump in global sales, while noting that the market could pick up next year as makers introduce new devices compatible with superfast 5G, or fifth-generation wireless networks.

The South Korean tech giant shipped 72.3 million units of smartphones over the July-September period, Strategy Analytics said, compared with 83.4 million units posted in the same period past year, when Samsung took up 21.2 percent of the market.

Overall, the results show a surge among Chinese manufacturers that sell low-cost smartphones. Xiaomi ranked 4th with a 9% global market share for the period on the global list, but was 38.1% behind Oppo and Vivo which both acquired 21% in-China shipment share on the domestic list.

With continued growth in the worldwide markets, Chinese brands occupied six of the top ten positions. Thus, retaining as world's second largest smartphone manufacturer with 14 percent share.

Matter of fact, the global market in smartphones plummeted 6% last quarter alone, reports Engadget. Samsung, the largest smartphone vendor in terms of market share, accounting for 20.3% of shipments in 3Q18, declined 13.4% year over year in the quarter.

By offering additional features such as Artificial Intelligence (AI), dual cameras, full-screen displays, and higher memory configurations, smartphone OEMs are subtly increasing the average selling price of devices and maintaining revenues, despite declining shipments, he further said. It has been making inroads in India, Indonesia and Spain.

HMD almost doubled its shipments to 4.8 million but it still only holds 1% of the market.

Since emerging markets are under-penetrated, they have a smaller smartphone base and are not able to offset the global decline.

Most of Huawei's and Xiaomi's volume growth is coming at the expense of the "all others" category that lost 24.3% of its shipment volume year over year and 7.2 points of market share. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis.