Gartner says five of top 10 worldwide mobile phone vendors increased sales in second quarter of 2016

Via Gartner Newsroom

Aug 19, 2016

Global Sales of Smartphones Grew 4.3 Percent Year on Year

Apple Had Three Consecutive Quarters of Slowing Demand as Sales Declined 7.7 Percent

Global sales of smartphones to end users totaled 344 million units in the second quarter of 2016, a 4.3 percent increase over the same period in 2015, according to Gartner, Inc. Overall sales of mobile phones contracted by 0.5 percent with only five vendors from the top 10 showing growth. Among them were four Chinese manufacturers (Huawei, Oppo, Xiaomi and BBK Communication Equipment) and South Korea's Samsung.

"Demand for premium smartphones slowed in the second quarter of 2016 as consumers wait for new hardware launches in the second half of the year," said Anshul Gupta, research director at Gartner. In addition, the decline in sales of "feature phones" (down 14 per cent) bolstered the decline in overall sales of mobile phones in the second quarter of 2016 (see Table 1).

All mature markets except Japan saw slowing demand for smartphones leading to a decline in sales of 4.9 percent. In contrast, all emerging regions except Latin America saw growth, which led to smartphone sales growing by 9.9 percent.

Table 1

Worldwide Smartphone Sales to End Users by Vendor in 2Q16 (Thousands of Units)

Company 2Q16 Units 2Q16 Market Share (%) 2Q15 Units 2Q15 Market Share (%)
Samsung 76,743.50 22.3 72,072.50 21.8
Apple 44,395.00 12.9 48,085.50 14.6
Huawei 30,670.70 8.9 26,454.40 8
Oppo 18,489.60 5.4 8,073.80 2.4
Xiaomi 15,530.70 4.5 15,464.50 4.7
Others 158,530.30 46 160,162.10 48.5
Total 344,359.70 100 330,312.90 100

Source: Gartner (August 2016)

In the second quarter of 2016, Samsung had nearly 10 percent more market share than Apple. Samsung saw sales of its Galaxy A and Galaxy J series smartphones compete strongly with Chinese manufacturers. Its new smartphone portfolio also helped Samsung win back share it recently lost in emerging markets.

Apple continued its downward trend with a decline of 7.7 percent in the second quarter of 2016. Apple sales declined in North America (its biggest market) as well as in Western Europe. However, it witnessed its worst sales decline in Greater China and mature Asia/Pacific regions, where sales declined 26 percent. Apple had its best performance in Eurasia, Sub-Saharan Africa and Eastern Europe regions in the second quarter of 2016, where iPhone sales grew more than 95 percent year on year.

Among the top five smartphone vendors, Oppo exhibited the highest growth in the second quarter of 2016 at 129 percent. This is due to strong sales of its R9 handset in China and overseas.

"Features such as an anti-shake camera optimized for selfies, and rapid charge technology, helped Oppo carve a niche market for itself and boost sales in a highly competitive and commoditized smartphone market," said Mr. Gupta.

In terms of the smartphone operating system (OS) market, Android regained share over iOSto achieve an 86 percent share (see Table 2) in the second quarter of 2016. Android's performance continued to come from demand for mid- to lower-end smartphones from emerging markets, but also from premium smartphones, which recorded a 6.5 percent increase in the second quarter of 2016.

A number of key Android players, such as Samsung with the Galaxy S7, introduced their new high-end devices, but Chinese brands like Huawei and Oppo are also pushing their premium smartphone ranges with more affordable devices.

"Google is evolving the Android platform fast, which allows Android players to remain at the cutting edge of smartphone technology," said Roberta Cozza, research director at Gartner. "Facing a highly commoditized smartphone market, Google's focus is to further expand and diversify the Android platform with additional functionalities, like virtual reality, enabling more-intelligent experiences and reach into wearables, connected home devices, in-car entertainment and TV."

Table 2

Worldwide Smartphone Sales to End Users by Operating System in 2Q16 (Thousands of Units)

Operating System 2Q16 Units 2Q16 Market Share (%) 2Q15 Units 2Q15 Market Share (%)
Android 296,912.80 86.2 271,647.00 82.2
iOS 44,395.00 12.9 48,085.50 14.6
Windows 1,971.00 0.6 8,198.20 2.5
Blackberry 400.4 0.1 1,153.20 0.3
Others 680.6 0.2 1,229.00 0.4
Total 344,359.70 100 330,312.90 100

Source: Gartner (August 2016)

Additional information is available in the Gartner report "Market Share Alert: Preliminary, Mobile Phones, Worldwide, 2Q16."

"The top five smartphone manufacturers together continued to gain market share in the second quarter of 2016 — up from 51.5 percent to 54 percent year on year, led by Oppo, Samsung and Huawei," said Mr. Gupta.

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