Tag Archives: market share

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

iPhone Market Share More Than Triples

The iPhone 6 has given Apple a record third quarter but if we look at the latest research figures and taking into consideration that Apple has made it available in a lot more countries during this quarter, it is pretty certain that Apple is going to report record iPhone sales.

According to analyst firm Kantar Group, the iPhone has gained a lot of market share in the U.S., Japan, Germany and Great Britain.

In Great Britain the iPhone market share more than tripled from 8.5% to 31%. In Japan it also almost tripled from 17% to 48% while market share in the U.S. increased to 41.5%, up from 32.6%.

In Germany the market share was up 5.1% to 16.9%. According to the report some other regions in the EU decreased and so did the market share in China but could be down to the late launches and the fact that a majority of the market in those regions is in the entry level space.

Some positive news after the class action law suit has made headlines in the last few days.

iPad Sales Will Continue To Decline, Android To Dominate Tablet Market For Years

While Apple had a record quarter last time around, iPad sales continued to disappoint and decreased by 13%.

According to market research firm IDC that trend is going to continue. For the first time since the launch of the iPad it will see a year over year decline which is not surprising if you look at the last few quarters.

Currently the iPad has 27.5% market share which is forecasted to decline to 24.5% by 2018. Android is dominating the space with 67.7% market share but will also experience a slight decrease to 64%.

What Apple and Google leave on the table will benefit Microsoft. During the last earnings we already pointed out that strong demand for the Surface Pro 3 has increased tablet revenues to almost $1 billion and if IDC is right that will multiply as they predict the market share to increase from 4.6% to 11.4%.

Samsung Galaxy S5 Sales Way Below Expectations

Overall results for Samsung have not been impressive lately, as the electronics giant saw both revenue and profit decrease as the overall smartphone market share dropped from 32% to 25%. In China Xiaomi has taken the top spot and competition is increasing from all sides not just Apple with Motorola, LG and Huawei increasing their market share.

So while the iPhone 6 gave Apple a record quarter and 4 million devices were sold the first day and 10 million over the first weekend, Samsung is struggling with sales of the flagship Galaxy S5.

galaxy s5

According to the Wall Street Journal, a big reason for the bad numbers of the mobile division is the fact that the flagship Galaxy S5 is selling well below expectations. Sales for the last three month came in at 12 million units, 40% below what the company had forecasted. The Galaxy S4 sold 16 million units in the same time period.

According to WSJ, sales in China has declined by 50%, the only market which remains stable is the U.S.

Samsung is now increasing their marketing spend and plan to offer more discounts during the holiday season in an attempt to win back market share and clear warehouses.

Is Samsung about to lose Top Spot in India as well?

Earlier this month we reported that Samsung had lost the number one spot in China as local Xiaomi overtook them with a reported 14% market share, the Korean electronics giant dropped to 12%.

Samsung has had a struggling quarter as world wide market share declined, so did revenue and profits. As we pointed out before, Samsung is especially having problems to compete in the low- and mid-range market segment. This is how they lost the top spot to home grown Xiaomi in China and we might just see the same happing in India where Micromax is gaining ground on Samsung quickly.

Research firm IDC has just released the latest numbers for India and here is what they said:

“While Samsung has held on to its leadership position in the market, it is noteworthy that Micromax is growing faster. Samsung needs to continue to address the low-end of the market aggressively, and also needs a blockbuster product at
the high end to regain momentum.”

Ranking Overall Handset Market Share:
1. Samsung – 17% (-3%)

2. Micromax – 14% (+1%)

3. Nokia – 10%

Ranking Smartphone Market Share:

1. Samsung – 29% (-6%)

2. Micromax – 18% (+3%)

3. Karbonn- 8%

 

Looking at the quarterly growth of Mircomax and how quickly Samsung is declining, they might have to give up the top spot as early as next quarter.

And more competition is on its way: Motorola didn’t even show up in the first quarter, now they have managed to grab 5% of the total market share and sold over 1 million units right after launch according to IDC.

Xiaomi is also planning to enter the Indian market with a smartphone in the $50 range. Nokia has sold more than 12 million units of the $50 Lumia 520 and just recently released the Nokia 130 which is priced at $25.

Samsung is going to have to make a decision here, are they going to cut margins, fight for overall market share and volume or leave this market to other vendors so they can focus on the high end segment where the margins are still high.

Android owns 84% of the smartphone market, Apple declines

Research firm IDC has released the smartphone numbers for Q2. Android is simply killing it, owning 84% of the total market while everyone else declined in market share.

Total Smartphone Sales:

300 million units – 25% increase from last year

Market Share Breakdown:

Android: 84%
Apple: 11.7% (-1.3%)
Microsoft: 2.5% (-0.9%)
BlackBerry: 0.5% (-1.3%)

The other good news for Google is that Samsung isn’t as dominant as they used to be. In the previous quarter they accounted for 29.3% of the Android sales, two years ago they had 40%.

The decline from Apple might look bad but once you peel back the numbers a bit more it isn’t. While Samsung is declining in both market share and units sold, Apple shipped a record number of iPhones last quarter – 35.2 million. In addition to that, a majority of the Android units (59%) sold during the quarter cost less than $200, a market segment Apple doesn’t play in.

Apple is also going to release the iPhone 6 on September 9th which is almost guaranteed to boost their numbers. Samsung has already announced their new flagship, the Galaxy Alpha which didn’t really impress us.

 

Samsung struggling in low-end market, Revenue, Profits and Market Share Decline

Samsung Electronics just released their quarterly financials and disappointed on all fronts. It was the worst quarter in two years as the South Korean giant saw revenue and profits decline sharply and their overall smartphone market share dropped significantly.

Highlights:

  • Revenue: $50.86 billion (decrease of 9%)
  • Operating Profit: $6.99 billion (decrease of 25%)
  • Net Income: $6.11 billion (decrease of 20% compared to last year)
  • 95 million mobile handsets sold, 80% smartphones

 

According to IDC Research Samsung dropped from 32 to 25% in overall market share. While they are still the largest smartphone brand the challenge becomes clear when you look at the fact that the overall market has grown by 23% since last year while the number of units Samsung shipped declined by 4%.

IDC reports that Huawei and Lenovo were the two brands that drove the increase in the market, especially in emerging markets and the low-end segment. That is a market which Samsung has struggled to capture so far. Huawei is gaining market share quickly, so far this year they have shipped 34 million phones and Nokia has been successful with their entry level Lumia models in emerging market as well.

Higher than expected marketing expenses also impacted the button line. The company said that it was necessary to increase marketing efforts in order to clear inventory ahead of new product launches.

They didn’t give many details about the new models other than saying several would be coming in the next few month including a new flagship with a large screen, new design and material.

Let’s compare the financials to Apple as they reported their quarterly results earlier this month: While Apple generated less revenue ($37.4 billion), they managed to generate more net profit, $7.7 billion. Apple sold fewer phones than Samsung (35.2 million) but there are two fundamental differences here: Apple can show year over year growth, showed their strongest iPhone sales for the current period and unlike Samsung the company has not released new phones every quarter. With the upcoming iPhone 6 we should see the iPhone units increase dramtically.

Samsung is facing stiff competition from all sides. There is no doubt the iPhone 6 will be a success , at least in terms of sales, companies like Huawei, HTC and Lenovo are investing big in growing their market share in the high-end segment and Samsung has not been able to really compete in emerging markets with low-end models making up a majority of the smartphone sales.

The new flagship will be important to defend their leading position in the high-end space while they also need to come out with compelling models in the mid- and low-end segment.