15:44 28th Apr, 2016
Samsung Dominates Market, Apple Sales Drop: IDC Report
Apple witness the first ever drop in sales, while Oppo and Vivo displace Lenovo and Xiaomi among the top five smartphone brands.
Despite the smartphone market’s surge in recent times, the report released by IDC (International Data Corporation) suggest that the once dynamic market is losing its sheen. As per the report, a total of 334.9 million smartphones were shipped worldwide in the last quarter as compared to 334.3 million smartphones shipped in the first quarter of 2015 which has registered the smallest year-over-year growth on record. The minimal growth this quarter is primarily attributed to strong smartphone saturation in developed markets, as well as a year-over-year decline from both Apple and Samsung, the two market
Apart from Apple witnessing a dip in sales for the first time in nine years another notable observation, as per the report is that, Oppo and Vivo have gained a place among the top five smartphone brands, replacing Xiaomi and Lenovo. Oppo is at the third spot with Vivo at the fifth spot.
"Outside of China, many of these brands are virtually unknown and the ability of these rapidly growing Chinese vendors to gain entry into mature markets such as the United States and Western Europe will be essential if they have aspirations of catching Apple or Samsung at the top," said Anthony Scarsella, research manager with IDC's Mobile Phone team. "Huawei has proven that it can sell increasingly premium devices. In China, Huawei is already recognized as a premium brand, but it is now going toe-to-toe on build quality with premium devices like the Nexus 6P that are available worldwide. While Huawei is furthest along in terms of international recognition, selling equally impressive volumes outside of China remains a challenge for many of these brands, whether it is Xiaomi, Lenovo, OPPO, or Vivo. Their ability to drive local growth no longer applies when it comes to international expansion, where premium branding quickly turns to price
This report establishes Samsung as the reigning leader of the smartphone market although it recorded a 0.6 per cent year over year dip in global shipments. Huawei's continued domestic dominance, combined with a growing presence outside of China, enabled it to capture the number 3 position worldwide in 1Q16. Shipment volume for Huawei climbed from 17.4 million units in 1Q15 to 27.5 million this quarter for year-over-year growth of 58.4%. While Oppo is focused on gradually gaining foothold in the Asian market, Vivo is more focused on its domestic market.
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