Smartphone market driven by top five
LONDON: The global smartphone market grew by 7% year-over-year to 350.9 million units from 320 million units in Q2 2016.
The market continues to be driven by Chinese OEMs, which have optimised their operations in China. OEMs operating on the global stage, such as Apple or Samsung, saw modest growth as established markets for these companies continue to mature.
Samsung shipped 79.4 million smartphones in the quarter, up 3% from the year-ago result of 77.4 million units. The launch of the Galaxy S8/S8 Plus helped deliver 11% year-over-year revenue growth to 28.92 trillion KRW.
However, market share of Samsung declined to 23% in the quarter, down from 24% in the year earlier. Samsung has been struggling in China market as the strong top-three OEMs (Huawei, Oppo and Vivo) are dominating the market.
Apple reported a 2% growth in unit shipments for the quarter, shipping 41 million units in the quarter compared with 40.4 million units last year.
Apple has been able to grow its shipments year-over-year in light of consumer anticipation for the launch of the next, anniversary edition, of the iPhone later this summer or early fall.
Reinforcing the overall market trend towards larger screens, Apple continues to see strong demand for the premium iPhone 7 Plus model.
Huawei continues to hold the number three position globally, shipping 38.5 million smartphone units in the quarter – an increase of 20% from a year ago.
Huawei’s market share increased to 11%, narrowing the gap with Apple by 1% point in the second quarter. Huawei benefitted from the availability of its flagship P10 devices for all of Q2, even if the device is not performing as well as the P9 in the year prior.
Huawei’s Honor brand continues to do well. Huawei keeps growing its international business, something its Chinese competition has not been able to replicate.
Oppo and Vivo continued their growth stories in Q2 2017. Oppo grew 39%, from 21.9 million units in Q2 2016 to 30.5 million units in the most recent quarter. Vivo had an even higher growth rate, 45%, from 16.4 million units in Q2 2016 to 23.9 million units in Q2 2017.
This report is based on preliminary data from IHS Markit, a world leader in critical information, analytics and expertise for the major industries and markets that drive economies worldwide.
Source: The Sun Daily