Apple's Smartphone Market Share Slips as Huawei, Lenovo Make Gains

[MacRumors]

Apple's growth in the overall worldwide smartphone market continues to slow as it loses ground to smaller Chinese vendors releasing more affordable devices, even as the smartphone market itself grows substantially.

According to IDC's latest estimates, worldwide smartphone sales for the second quarter of 2014 grew 23.1 percent year-over year as smartphones continue to replace feature phones, with a record quarter of 295.3 million shipments.

Apple shipped 35.1 million iPhones during the quarter, up from 31.2 million during Q2 2013, for a share of 11.9 percent, a slight drop from its 13 percent share in the year-ago quarter. The company's growth was at just 12.4 percent.

Worldwide smartphone shipments in 2Q14 in millions of units (Source: IDC)​

Samsung, the vendor that has long held the top spot with the most smartphone shipments, fared even worse during the quarter, with estimated shipments of 74.3 million for a 25.2 percent share of the market, down from 32.3 percent in Q2 2013, and overall growth of -3.9 percent.

Smaller Chinese vendors like Huawei and Lenovo continue to see significant growth, with Huawei shipping 20.3 million smartphones during the quarter for a 6.9 percent share and growth of 95.1 percent, while Lenovo shipped 15.8 million smartphones for 5.4 percent market share and growth of 38.7 percent.

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 noted by IDC, Apple's second quarter is typically its seasonal low of the year due to its release schedule. Apple may see significant growth later in 2014 as it gears up to release the iPhone 6, meeting consumer demand for a larger-screened device for the first time.

Apple has also made efforts towards releasing low-cost devices in BRIC (Brazil, Russia, India, China) markets that are ripe for growth, but it is difficult for the company to keep up with the myriad low-cost devices coming from manufacturers like Lenovo and Huawei in those markets.

Article Link: Apple's Smartphone Market Share Slips as Huawei, Lenovo Make Gains

 

[Dreamer2go]

I, for once, is exciting for the new iPhone 6.... and I have the iPhone 5s.... can't wait till I upgrade!

 

[jrswizzle]

So....is Samsung doomed? Or is that only reserved for companies who sell more phones than they did last year yet drop in market share?

China as a market is picking up steam - I believe its set to pass the US as the #1 consumer market very soon if it hasn't already. Why we're seeing companies like Huawei and Lenovo (especially with the recent Moto purchase) moving up the charts.

Wouldn't surprise me to see Huawei be a very strong 3rd player in the market - and they don't even have to leave China to do it.....

Unless Apple moves into the low-end device tier, they won't be much of a marketshare player. Then again, they never claimed to or wanted to be. It would take a shift in overall corporate strategy for them to do so. I, for one, think they make some of the best devices and provide some of the best services in the world and think it would be great if they got into the low-end market....but I get they have a specific brand image they're going for.

I'm not gonna lie....I smiled when I saw the drop for Samsung....there are so many other Android options out there that are as good if not better. Hopefully we'll see some like HTC and LG finally pick up some steam (again). Its more fun when the pot is more mixed versus one company dominating.

 

[bandalay]

Quel suprise

So maybe when the market grows and all the sales go to cheaper models, Samsung isn't "better", just cheaper.

So Apple remains, still sweeping up most of the profits.

mwop mwop mwa

 

[AppleScruff1]

In before someone says, but at least Apple makes the most profits.

 

[kodos]

Good to see Samsung getting what they deserve. I have to use a Galaxy S4 for a client (working on an Android app for them). It is terrible. Not sure why people like them. Definitely much worse than my iPhone 5S and my Lumia 1520. It reminds me of the days of Windows computers loaded with bloatware. The whole thing is slow, it doesn't feel high quality, and the screen is ridiculously over-bright/over-contrasted.

Awful product.

 

[xero9]

In before someone says, but at least Apple makes the most profits.

Too bad the guy above you beat you to it, LOL

So maybe when the market grows and all the sales go to cheaper models, Samsung isn't "better", just cheaper.

So Apple remains, still sweeping up most of the profits.

mwop mwop mwa

 

[Tech198]

oppsy....

dang.... Apple just can't stay at the top can they..

... slipping & sliding all over the place like someone on a bar of soap.

 

[AppleScruff1]

Too bad the guy above you beat you to it, LOL

I missed it by this much ( )

 

[2457282]

In a world where the largets market share is still "Other," there is plenty of room for everyone to play in. It is surpising that Apple, Samsung, Microsoft, Google have not been able to lock things up. Together they still do not make 50% of phones shipped (i am talking hardware, not OS).

 

[jrswizzle]

oppsy....

dang.... Apple just can't stay at the top can they..

... slipping & sliding all over the place like someone on a bar of soap.

Do you even know the last time Apple was on top of world marketshare numbers?

The answer is never.

 

[tbayrgs]

In a world where the largets market share is still "Other," there is plenty of room for everyone to play in. It is surpising that Apple, Samsung, Microsoft, Google have not been able to lock things up. Together they still do not make 50% of phones shipped (i am talking hardware, not OS).

Not surprising in the slightest, considering the greatest untapped markets are emerging and devices from Apple, Google, Microsoft aren't priced for those markets. Most 'new' smartphone users will come from emerging markets, especially in Asia so I expect companies like Huawei, Lenovo, and Xiaomi to quickly move towards the top of these worldwide charts going forward.

 

[jrswizzle]

Not surprising in the slightest, considering the greatest untapped markets are emerging and devices from Apple, Google, Microsoft aren't priced or available for those markets. Most 'new' smartphone users will come from emerging markets, especially in Asia so I expect companies like Huawei, Lenovo, and Xiaomi to quickly move towards the top of these worldwide charts going forward.

Added a little bit....but you're right. Apple could stem that tide if they beefed up their lineup with larger displays and cheaper devices. They already have the brand recognition across the world. But as I mentioned above, Apple has a specific identity they seem to want to stick to. Which is fine - they clearly are doing ok raking in most of the industry's profit.

I do think the larger displays will cause quite a jump in marketshare in places like the US and Japan where Apple is already the top dog. Could also pick up marketshare in Europe and other markets where price isn't as big an issue. I do think there's some pent up demand for a larger iPhone, though I don't think its as pervasive as some say. Only one third of all smartphones sold has a display over 5". That number is growing, but its still far from a majority.

 

[PocketSand11]

Do you even know the last time Apple was on top of world marketshare numbers?

The answer is never.

Around 1984, if you'll count it, they had the most popular PC with a GUI.

 

[Piggie]

I said this on the iPhone forum a while ago.

History tells us that technologies climb fast as the electronics develop, the great brands are then miles in front of the cheaper ones.

There is a MASSIVE gulf between a cheap item and an expensive item.
As the market and electronics matures, it becomes harder as time goes on to maintain the gap.

Apple, and others, every single year are going to have a harder and harder task to persuade the general public that a 600, 700, 800 900 dollar phone is needed, when the 100 or 200 dollar ones are getting better year upon year and closing the gap.

Screens will get as good as they need to be. People won't need more memory, CPU's and GPU's will hit the same limits as desktop machines have now.

And every year the cheap phones will be getting better and better.

Put say a Motorolla Android against an iPhone 3 and it will totally destroy it, in probably every single detail. and an iPhone 3 was THE best, and it's not that long ago.

 

[jrswizzle]

Around 1984, if you'll count it, they had the most popular PC with a GUI.

Hmm, I meant phones but ok.

 

[PocketSand11]

So maybe when the market grows and all the sales go to cheaper models, Samsung isn't "better", just cheaper.

So Apple remains, still sweeping up most of the profits.

mwop mwop mwa

You don't know if Apple will make the most profit. Market share isn't the only factor for profit but is one of them. What if Apple loses sales due to low market share? That's what happened with the Mac back when there was so little software for it.

----------

Put say a Motorolla Android against an iPhone 3 and it will totally destroy it, in probably every single detail. and an iPhone 3 was THE best, and it's not that long ago.

No, I'd still rather use the iPhone 3GS for the OS. Whatever Android OS you can choose can't even sync with my PC (plus it's a total mess in other ways) until they clean up their act, so it's not an option.

 

[ImperialForces]

I wouldn't trust IDCs predictions as far as I could throw them. AppleInsider posted an article detailing how they purposefully miscounted shipped devices to make their clients look good at the expense of their competition.

http://appleinsider.com/articles/14/07/26/apple-incs-double-digit-us-mac-growth-contradicts-idc-gartner-reports-of-a-mac-sales-slump

 

[jrswizzle]

You don't know if Apple will make the most profit. Market share isn't the only factor for profit but is one of them. What if Apple loses sales due to low market share? That's what happened with the Mac back when there was so little software for it.

If and when Apple's sales DECLINE, we can have that discussion.

But despite all the doom and gloom, it hasn't happened. Each quarter, the year-over-year numbers are better. Marketshare may be down, but they sold more iPhones in the 2014 Quarter than 2013.

And marketshare has little to do with profits. Apple has owned a majority of the profits for years now and have never been higher than a distant second in world marketshare rankings.

Now do profits matter to you or me as consumers? No - but they definitely do to Apple, which in turn affects the decisions they make moving forward. If they're raking in profits, selling more phones each year and like the image their brand has why would they bother delving into the low-end market and playing lowest-common-denominator just to add a little more marketshare?

Business-wise, it doesn't really make sense unless Apple DECIDES they want to play that game. At which point I'd say, more power to them - its their business.

 

[macduke]

Huh, what is a Lenovo phone like? Didn't even realize that was a thing. The others at least sound familiar. I think Huawei is big in Asia.

 

[tongxinshe]

So obviously all companies kind of lost for this Q2, the only winner is Google.

When there are no more big Android players, but hundreds of small & tiny ones, vanilla Android will command. By that time almost no customers will pay attention to which brand of smartphone they get, they will only know whether they got an Android phone (which means mainstream) or a non-Android phone. From that time, the game will become harder and harder for Apple to play.

 

[TWSS37]

I missed it by this much ( )

AKA everyone else's profits compared to Apple!

 

[cube]

Huh, what is a Lenovo phone like? Didn't even realize that was a thing. The others at least sound familiar. I'm think Huawei is big in Asia.

Well, many of them are "like Motorola" since some time.

 

[cymerc]

Shouldn't the title be "Samsung's Smartphone Market Share Slips as Huawei, Lenovo Make Gains" ?

 

[T-Will]

Obligatory Apple is doomed comment.