Chinese smartphone manufacturers continue to close gap on rivals
20 November, 2016, 11:10
For instance, Huawei posted an 18.5% growth in smartphone sales in Q3 and its market share grew to 8.7% during the quarter from 7.7% in the same quarter past year. Leading this charge was Huawei, Oppo and BBK (the company that owns the likes of Oppo, OnePlus and Vivo).
Challenger-in-chief Apple's Q3 shipments dropped 6.6 percent annually to 43 million, while in the last 12 months, its market share slid a point and half to 11.5 percent.
The survey by Gartner Inc. showed that in the third quarter, three Chinese vendors - Huawei, Oppo and BBK Communication Equipment - together accounted for 21 percent of the smartphones sold worldwide, and were the only vendors in the top five to increase sales.
Gartner said overall smartphone sales in the quarter rose 5.4 percent to 373 million units.
Against the growing strength of the Chinese, Apple has faltered and Samsung suffered its largest decline in sales on record in Q3 2016.
"China led the growth in the smartphone market in the third quarter of 2016", Gupta wrote.
81% of Oppo's Q3, smartphone sales were in China, and 89% of BBK's were in China.
However, the manufacturers also grew sales strongly in other countries, including India, Indonesia, Malaysia, Thailand and Russian Federation. Gartner said the iPhone 7 has so far struggled to stimulate replacement sales.
Despite a good start for Samsung in the year, the battery problem that caused the company's Note products to remain unsold remained one of the biggest reasons for poor performance.
Fourth-placed Oppo almost doubled its market share to 6.7 percent from 3.4 percent a year earlier, selling 24.9 million smartphones, while fifth-placed BBK sold 19.9 million units to increase its market share to 5.3 percent from 2.9 percent. (NASDAQ: GOOGL) held an 87.8% share of the market in the third quarter, up from 84.7% a year ago.
"The decision to withdraw the Galaxy Note 7 was correct, but the damage to Samsung's brand will make it harder for the company to increase its smartphone sales in the short term", Gupta said. Microsoft still managed to sell 1.5 million Windows phones, while BlackBerry sold 755,000 smartphones, but their respective market shares are now approaching zero.
"For Samsung, it's crucial that the Galaxy S8 launches successfully, so that partners and customers regain trust in its brand".
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