Published: Sun, November 04, 2018
Technology | By Lionel Gonzales

Samsung Elec smartphone leadership under growing challenge

Samsung Elec smartphone leadership under growing challenge

The estimates from Strategy Analytics for the third quarter of 2018 claim there were 360 million smartphone shipments globally, a figure that is a decrease of 8.4 percent year-on-year from the 393.1 million in Q3 2017. Other Chinese smartphone brands Xiaomi, Oppo and Vivo, are growing their markets share in India and Indonesia.

Chinese brands have maintained their trajectory of growth with strong performances in markets outside China. The report said the market share leader continues to feel pressure from all directions, especially with China's Huawei inching closer to the top after its second consecutive quarter as the number two vendor. Xiaomi, which just completed a 100 million global shipments goal for 2018 on October 26, recorded 35.7 million global shipments for the period, up 25% year-over-year.

According to Strategy Analytics, Apple's iPhone sales of 46.9 million units suggested the California giant is focusing on price increases, capping its overall volume growth.

Samsung is more seriously losing market share-down from 22.1% to 20.3% year-on-year-with its shipments down around 13% year-on-year. Samsung continued to enjoy its status as king of the hill in Q3 with its 20.3% market share and 72.2 million shipments, but those numbers are down 13.4% from the year-ago quarter.

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"The global smartphone market has now declined for four consecutive quarters and is effectively in a recession", said Strategy Analytics director Linda Sui.

"Despite the decline in its home market, Chinese brands OPPO, vivo and Xiaomi reached new highs in smartphone shipments in a quarter", Pathak said. However, this also presents long-term growth opportunities for OEMs with many entering such markets to grow their sales.

Overall, the results show a surge among Chinese manufacturers that sell low-cost smartphones.

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.

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