7:32 PM
Smartphone Shipments Down for First Time
7:32 PMSmartphone Shipments Down for First Time TAIPEI—Smartphone shipments fell for the first time in their nearly decade-long history duri...
Smartphone Shipments Down for First Time
TAIPEI—Smartphone shipments fell for the first time in their nearly decade-long history during the first quarter this year, according to market research firm Strategy Analytics.
Global smartphone shipments fell 3% to 335 million units in the first three months of this year from the same period a year ago, the company said in an April 28report.
“Smartphone growth is slowing due to increasing penetration maturity in major markets like China and consumer caution about the future of the world economy,” Strategy Analytics analyst Linda Sui said in the report. The world’s top-two smartphone makers, Samsung and Apple, face increasing competition from rivals in China, according to Strategy Analytics. The smartphone market, worth about $400 billion in 2015, has been a key leader of growth in the global electronics industry.
To be sure, another market researcher, International Data Corp. (IDC) said that smartphone growth was flat during the first quarter. Smartphone shipments eked out an almost infinitesimal gain to 334.9 million units worldwide from 334.3 million units in the first quarter last year, marking the smallest annual growth on record, according to an April 27 IDC report.
Samsung maintained the top spot with about 24% of the world smartphone market. South Korea’s biggest company shipped 79.0 million smartphones worldwide during the first quarter of this year, dipping 4% from 82.7 million units in the same period a year ago, according to Strategy Analytics. Samsung’s new Galaxy S7 flagship smartphone and its popular J series models are helping to maintain the company’s smartphone leadership, according to the report.
In the number-two spot, Apple’s shipments of its flagship iPhone plunged 16% from a year ago to 51.2 million units worldwide in the first quarter of 2016. Apple’s smartphone market share slipped from 18% to 15% in the past year, according to Strategy Analytics.
“Apple is facing iPhone fatigue, and pressure is mounting for Apple to innovate a new wow design beyond its standard rectangle form factor,” analyst Sui said in the report.
During the same period, some challengers in China have gained market share in the smartphone business at the expense of Samsung and Apple.
Huawei strengthened its number-three position, garnering an 8% market share in the first quarter this year, up from 5% a year ago. The company started by members of China’s People’s Liberation Army saw smartphone shipments march ahead 64% annually to 28.3 million units worldwide.
“Huawei is closing the gap on Apple, but Huawei itself is now being chased hard by ambitious rivals like OPPO and Vivo,” according to Sui.
OPPO shipped 15.5 million smartphones, grabbing the number-four spot with a 5% market share in the first quarter this year. OPPO’s gains came after introductions of its popular range of 4G models like the R9 in Asia and other markets, Strategy Analytics said.
Falling from its number-three position several years ago, Xiaomi has landed in fifth place with a 4% market share. Xiaomi remains under pressure from OPPO, Vivo and others Asian competitors, while it is still weak in North America and Western Europe, according to the report.
"Outside of China, many of these brands are virtually unknown and the ability of these rapidly growing Chinese vendors to gain entry into mature markets such as the United States and Western Europe will be essential if they have aspirations of catching Apple or Samsung at the top," said Anthony Scarsella, research manager with IDC's Mobile Phone team. "Huawei has proven that it can sell increasingly premium devices. In China, Huawei is already recognized as a premium brand, but it is now going toe-to-toe on build quality with premium devices like (Huawei’s) Nexus 6P.
“While Huawei is furthest along in terms of international recognition, selling equally impressive volumes outside of China remains a challenge for many of these brands, whether it is Xiaomi, Lenovo, OPPO or Vivo. Their ability to drive local growth no longer applies when it comes to international expansion, where premium branding quickly turns to price competition, Scarsella said."
“Smartphone growth is slowing due to increasing penetration maturity in major markets like China and consumer caution about the future of the world economy,” Strategy Analytics analyst Linda Sui said in the report. The world’s top-two smartphone makers, Samsung and Apple, face increasing competition from rivals in China, according to Strategy Analytics. The smartphone market, worth about $400 billion in 2015, has been a key leader of growth in the global electronics industry.
To be sure, another market researcher, International Data Corp. (IDC) said that smartphone growth was flat during the first quarter. Smartphone shipments eked out an almost infinitesimal gain to 334.9 million units worldwide from 334.3 million units in the first quarter last year, marking the smallest annual growth on record, according to an April 27 IDC report.
Samsung maintained the top spot with about 24% of the world smartphone market. South Korea’s biggest company shipped 79.0 million smartphones worldwide during the first quarter of this year, dipping 4% from 82.7 million units in the same period a year ago, according to Strategy Analytics. Samsung’s new Galaxy S7 flagship smartphone and its popular J series models are helping to maintain the company’s smartphone leadership, according to the report.
In the number-two spot, Apple’s shipments of its flagship iPhone plunged 16% from a year ago to 51.2 million units worldwide in the first quarter of 2016. Apple’s smartphone market share slipped from 18% to 15% in the past year, according to Strategy Analytics.
“Apple is facing iPhone fatigue, and pressure is mounting for Apple to innovate a new wow design beyond its standard rectangle form factor,” analyst Sui said in the report.
During the same period, some challengers in China have gained market share in the smartphone business at the expense of Samsung and Apple.
Huawei strengthened its number-three position, garnering an 8% market share in the first quarter this year, up from 5% a year ago. The company started by members of China’s People’s Liberation Army saw smartphone shipments march ahead 64% annually to 28.3 million units worldwide.
“Huawei is closing the gap on Apple, but Huawei itself is now being chased hard by ambitious rivals like OPPO and Vivo,” according to Sui.
OPPO shipped 15.5 million smartphones, grabbing the number-four spot with a 5% market share in the first quarter this year. OPPO’s gains came after introductions of its popular range of 4G models like the R9 in Asia and other markets, Strategy Analytics said.
Falling from its number-three position several years ago, Xiaomi has landed in fifth place with a 4% market share. Xiaomi remains under pressure from OPPO, Vivo and others Asian competitors, while it is still weak in North America and Western Europe, according to the report.
"Outside of China, many of these brands are virtually unknown and the ability of these rapidly growing Chinese vendors to gain entry into mature markets such as the United States and Western Europe will be essential if they have aspirations of catching Apple or Samsung at the top," said Anthony Scarsella, research manager with IDC's Mobile Phone team. "Huawei has proven that it can sell increasingly premium devices. In China, Huawei is already recognized as a premium brand, but it is now going toe-to-toe on build quality with premium devices like (Huawei’s) Nexus 6P.
“While Huawei is furthest along in terms of international recognition, selling equally impressive volumes outside of China remains a challenge for many of these brands, whether it is Xiaomi, Lenovo, OPPO or Vivo. Their ability to drive local growth no longer applies when it comes to international expansion, where premium branding quickly turns to price competition, Scarsella said."
