Chinese OEM Sweeps the Market, Leads over iPhone

Looks like the Chinese are having big chunk of smartphone market share, according to latest IDC figures. While Samsung comes up top this quarter, Chinese OEMs (original equipment manufacturer) collectively takes a similar chunk of pie.

The smartphone market has gone up 4.3% in the first quarter of 2017, with a total of 347.4 million units of shipment, according to IDC report. This is higher that the predicted 3.6% growth.

Samsung once again tops the table with 79.2 million shipments taking 22.8% of the market share, the J and A series driving sales with more affordable price points contributing to growth in the market. IDC also quoted that the discounted price of S7 series making way for S8 series also added to sales growth. With a favourable response from the recent launch of S8, growth is expected to maintain for the next quarter.

Meanwhile, Apple has been facing a flat line, with shipments only hitting 51.6 million (14.9% market share), a slight bump from 51.2 million last year. While there is a refreshed SE and (Product) Red helping boost sales slightly, it is expected that the Cupertino giant will see a higher jump if rumours of the 10th anniversary edition phone becomes a reality.

Ryan Reith, program vice president with IDC’s Worldwide Quarterly Mobile Device Trackers said “There is no question that 2016 was a pivotal year for the industry as growth dipped to low single digits for the first time. However, we believe the industry will show some rebound in 2017, and the strong first quarter results certainly support this argument……And despite any formal announcements from Apple it is safe to say the industry is highly anticipating what comes from this year’s iPhone announcements.”

Following from the top 2 battling in the Android vs. iOS arena, Chinese OEM follow closely behind. Huawei takes the lead (9.8%) with Oppo (7.4%) and vivo (5.2%) following close behind, collectively taking 22.4% of the market share. Huawei saw 22% growth with 34.2 million units shipped. This is compounded with their flagship P10 series release, as well as Mate series and sales in their mid range Y series and Honor brand.

Oppo saw success in international markets, gaining much popularity in Southeast Asian countries, shipping 25.6 million units this quarter. Meanwhile vivo shipped 18.1 milion units. Both companies are seen aggressively targeting international markets, focusing on the South East Asian region.

“We still expect most of the growth to come from more affordable models in a variety of markets” said Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Despite all the popularity and media hype around premium devices, we continue to witness a shift in many companies’ portfolios geared towards affordable devices with premium-type styling compared to flagship models. Companies have started to implement a single premium design language that ultimately blurs the lines between the high-end and the low-end, allowing the average consumer to jump on the brand without a hefty upfront investment.”

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