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Samsung Market Share Continues To Decline, Xiaomi Soars

Samsung continues to see their smartphone market share decline. The Galaxy S5 has sold well below expectations and the South Korean giant has also struggled in China where Xiaomi took the number 1 spot from Samsung earlier this year.

The latest numbers from research firm Gartner reveal that Samsung continues to struggle while the growth continues for Xiaomi.

In the third quarter of 2014 overall smartphone sales increased by 20% thanks to demand in emerging markets.

Smartphones which account for 66% of total mobile sales are gaining traction in emerging markets, especially since the price difference to feature phones continues to decrease.

Samsung is still the largest smartphone maker but has lost almost 8% within a year. Xiaomi has seen the largest growth and are now the 4th largest smartphone manufacturer as market share increased from 1.5% to 5.3%. Huawei holds the third spot but Xiaomi is expected to overtake Huawei as they are growing quicker and are only 0.1% behind. Considering Xiaomi is only for sale in a number of regions the future growth potential is enormous.

Apple sales grew 26% in the third quarter thanks to the new iPhone 6 and iPhone 6 Plus. Gartner expects Apple to have the best quarter ever in terms of iPhone sales during the fourth quarter.

Worldwide Smartphone Sales to End Users by Vendor in 3Q14 (Thousands of Units)

Company

3Q14

Units

3Q14 Market Share (%)

3Q13

Units

3Q13 Market Share (%)

Samsung

73,212.4

24.4

80,356.8

32.1

Apple

38,186.6

12.7

30,330.0

12.1

Huawei

15,934.9

5.3

11,665.7

4.7

Xiaomi

15,772.5

5.2

3,617.5

1.5

Lenovo

15,011.9

5.0

12,882.0

5.2

Others

142,891.6

47.5

111,445.0

44.5

Total

301,009.9

100.0

250,297.0

100.0

Source: Gartner (December 2014)

“Over the holidays we expect record sales of the iPhone 6 and iPhone 6 Plus, but we should not underestimate the Chinese vendors and local brands,” said Annette Zimmermann, research director at Gartner. “Chinese players will continue to look at expanding in overseas emerging markets. In Europe prepaid country markets and attractive lost-cost LTE phones will also offer key opportunities for these brands.” Gartner expects sales of smartphones to reach 1.2 billion units in 2014.

In terms of OS market share it is no surprise that Android is dominating with 83.1%. iOS holds 12.7% while both Windows and Blackberry declined.

Worldwide Smartphone Sales to End Users by Operating System in 3Q14 (Thousands of Units)

Operating System

3Q14

Units

3Q14 Market Share (%)

3Q13

Units

3Q13 Market Share (%)

Android

250,060.2

83.1

205,243

82.0

iOS

38,186.6

12.7

30,330

12.1

Windows

9,033.4

3.0

8,916

3.6

Blackberry

2,419.5

0.8

4,401

1.8

Other OS

1,310.2

0.4

1,407

0.6

Total

301,009.9

100.0

250,296.8

100.0

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