Smartphone shipments returned to growth in Q2 2016

The worldwide smart phone market grew modestly in Q2 2016 after a disappointing first quarter. Global shipments reached over 330 million units, with Samsung leading the market with shipments around 80 million units. A disappointing quarter a year ago led to favorable annual comparisons, while shipments were flat compared with Q1. ‘The success of the Galaxy S7 together with a de-emphasis on the low end of its portfolio has led to a rise in handset ASP,’ said Canalys Senior Analyst Tim Coulling. ‘Samsung’s VR move has proved a wise one, with Gear VR bundles helping boost flagship handset sales.’

Apple shipped 40 million iPhones in Q2, a second consecutive annual decline in shipments. ‘The launch of the iPhone SE has done little to improve Apple’s fortunes,’ said Canalys Analyst Rushabh Doshi. ‘Shipments in intended growth markets, such as China and India, saw little improvement as the price of the device kept it out of reach of the mass market, which typically sees strong shipments. Consumers instead opted for local vendors, whose build quality and specifications are a better value alternative.’

In third place, Huawei’s shipments increased to 31 million on the back of record shipments in China and continued growth in EMEA. ‘Huawei has had an excellent start to 2016, with its leadership positon in China helping the global picture,’ said Coulling. ‘Despite this strong start, it will need to continue breaking shipment records and improve its position in the US if it is to surpass its annual shipment target of 140 million units.’

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