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Shipment for Samsung slips as Huawei gains

Written by - Reviewed by Glozine Team

Published: Jul 31, 2014 | Last Updated: Jan 18, 2016

According to IDC report, shipment for Samsung went down during the second quarter of the year while Huawei’s shipment tremendously increased.
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IDC also reports that the global market for Smartphone looks very stable and is showing no signs of slowing down. This is according to the latest pulse check they conducted.

In this second quarter there was an annual growth on 23.1 percent attributed to the shipment of about 295.3 million units worldwide.

The growth was 2.6 percent on a quarterly basis, but IDC reflected in the report that the “record second quarter” points toward “plenty of opportunity and momentum.” These sentiments were expressed by the IDC program director Ryan Reigh.
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Reigh added that they now have more than a dozen vendors who will be able to land in the top 5 in the next quarter.

A few of these companies are currently operating in a single country, but they all recognize the opportunity for growth outside their home turf and therefore they should not be taken to be complacent.

This report will definitely trigger their appetite for trading in other countries.
China is still the focal point for all mobile OEMs. This is even exerting pressure on Lenovo which is home-grown. Lenovo still hangs on with record shipments of its own despite facing the increasing pressure.
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Chinese OEMs are also putting pressure on other hardware brands outside of China. This is more so in emerging markets as the feature phone continues to find itself being edged out due to the rise of cheaper smartphones.

“The offer of smartphones at a much better value than the top global players but with a stronger build quality and larger scale than local competitors gives these vendors a precarious competitive advantage,” said Melissa Chau, who is a senior research manager for on IDC’s Worldwide Quarterly Mobile Phone Tracker team.

Shipments by Huawei nearly doubled year over year to 20.3 million units which help to boost market share to nearly 7 percent.

In the same period, Samsung’s shipments went down slightly to 74.3 million units resulting in its market share dipping to 25 percent this is down from 32 percent a year earlier. The second quarter of 2014 was therefore not very favorable for the market leader Samsung.

Apple’s market also dipped slightly to 12 percent despite its shipments rising to 35.1 million units.
IDC analysts warned against getting too comfortable even as they projected a double-digit annual growth following quarter-after-quarter growth.
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The Smartphone report follows IDC’s update on 24th July on the global tablet market.
Market forces are quite dynamic and therefore the players should always be on the look out for any factors that may reduce their market share as well as those that can increase their market share.

Nevertheless, analysts reflect that the recent Apple/IBM partnership will boost tablet usage with more enterprise-specific offering and this might make tablets to still continue a longer boom in the business sectors.

IDC analysts also project that Smartphone shipments will break the 300-million-unit mark during the third quarter of this year. If this happens it will be for the first time ever.

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