Apple and Samsung Lose Smartphone Market Share to Chinese Vendors in 2Q14 [Chart]

Apple and Samsung Lose Smartphone Market Share to Chinese Vendors in 2Q14 [Chart]

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The worldwide smartphone market grew 23.1% year-over-year in 2Q14 setting a record of 295.3 million shipments, reports IDC. The market grew 2.6% sequentially due to strong demand and low-cost smartphones. Next quarter is forecasted to be the first to surpass shipments of 300 million smartphone units worldwide.

Despite a challenging quarter for Samsung, and to a lesser extent Apple, the strong market demand boosted results for most smartphone vendors. Emerging markets supported by local vendors are continuing to act as the main catalyst for smartphone growth. Among the top vendors in the market, a wide range of Chinese OEMs more than outpaced the market in 2Q14. By far the most impressive was Huawei, nearly doubling its shipments from a year ago, followed by another strong performance from Lenovo.

"As the death of the feature phone approaches more rapidly than before, it is the Chinese vendors that are ready to usher emerging market consumers into 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, Senior Research Manager with IDC's Worldwide Quarterly Mobile Phone Tracker.

Smartphone Vendor Highlights:
● Samsung saw the Galaxy S5 ship millions of units this quarter, despite the criticisms leveled at it, while S4 and even S3 volumes remained strong as more affordable alternatives. Collectively Samsung lost 7% market share compared to a year ago, despite having one of the largest smartphone portfolios of all OEMs. To maintain its position at the top, Samsung will need to focus on building momentum in markets dominated by local brands.

● Apple's second quarter is always its seasonal low of the year, but even more so this time in advance of the iPhone 6, with consumers holding their collective breath for the long-awaited bigger screens. Apple enjoyed continued success in the BRIC markets, a good sign that it is building its footprint in emerging markets. Given the pent-up demand, the third quarter could be a drought or a flood, depending on the timing of the next launch.

● Huawei's story centered on 4G LTE pick up, particularly in China, as all three national carriers subsidized 4G handsets like the P7 to encourage consumers to upgrade from 3G. Outside of China, large volumes of its lower-cost Y series fueled growth across most regions. The company continues to focus on broadening its global reach and the 2Q14 results show that the momentum is undoubtedly there.

● Lenovo had a record quarter in China despite tremendous pressure from local brands. During the quarter, Lenovo saw increased success from the A788T, as well as the 3G A388T. And while its Motorola acquisition is undergoing approval, Lenovo continued to gain traction in international markets. While less than 5% of Lenovo's shipments were registered outside of China in the second quarter of 2013, this share nearly tripled in 2Q14, with emerging markets, particularly BRIIC countries, picking up the largest volumes.

● LG volumes were largely driven by its L series, helped by models like the L70, which performed well in many markets including the United States. With the G3 launched at the end of the quarter in Korea, greater volumes are expected to show up in the third quarter.

More details can be found in the charts and the full report linked below...

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Apple and Samsung Lose Smartphone Market Share to Chinese Vendors in 2Q14 [Chart]

Apple and Samsung Lose Smartphone Market Share to Chinese Vendors in 2Q14 [Chart]

gwyneth - July 30, 2014 at 3:36am
Hahahahaha, interesting how some people think the cellular world is made out of Apple and Samsung only. They might be better than each other or than some other brands in some aspects but no cellphone brand is perfect in all aspects. Apple's screen is made by Samsung, or was at least up to now. They were all made in China before Apple finally decided to bring some production to the US. It isn't logical anyways to compare iOS to Android or to any other operating system. All operating systems have their strong points and their flaws. Be it iOS, Web OS, Symbian or Android or anything else. Phones should be compared to other phones using the same operating system, only then you can find the pure winner!
Nat - July 30, 2014 at 3:38am
That depends, what are the functionality with the different camera' sand buttons? How can that determine it?
Lolwut - July 29, 2014 at 6:35pm
Not much. Chinese-blindese can't do anything, not even huawei.