Tag Archives: xiaomi

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

Xiaomi: “We Are Growing Too Quickly”

Smartphone maker Xiaomi took the leading position in terms of market share in China back in August this year. The company is only four years old and has experienced insane growth in the recent past. Last week CEO Lei Jun said that the company could become the largest smartphone company in five to ten years.

But that is easier said than done. Xiaomi is now slowing down the expansion outside of China. In an interview with Bloomberg, Hugo Barra, Vice President Global Operations, said that they will be focusing on five instead of ten new markets. India, Indonesia, Malaysia, and the Philippines will be the focus while they will delay launching their devices in Brazil, Turkey, Mexico, Russia and Thailand.

“We’re shipping absurd quantities into India. We went from shipping 50,000 a week into India to 200,000”.

India will continue to be a focus market for Xiaomi. In less than five month since they launched, sales has passed half a million units.

So Xiaomi is growing extremely quickly and not being able to keep up with demand is a luxury problem to have but the expansion needs to continue if they want to have a shot at challenging Apple and Samsung. So far Xiaomi focuses on emerging markets, it will be interesting to see in the future how they have to adjust their strategy in mature markets. Xiaomi sells mainly on price and in order to be able to do that they spend a fraction on marketing compared to Apple and Samsung. In order to position themselves as a premium brand and go up against Apple and Samsung they will need to invest in building a premium brand.

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.

Samsung Galaxy Alpha Released – Metal Frame, AMOLED Display, 12MP Camera

Samsung Electronics has officially launched the Galaxy Alpha which we have reported on before. As we discussed in previous articles, it features a metal frame, curved corners and a soft back cover.

Here is what the company had to say:

“The Galaxy Alpha was built and designed based on the specific desires of the consumer market,” said JK Shin, CEO and Head of IT & Mobile Communication at Samsung Electronics. “With an entirely new appearance, the Galaxy Alpha focuses on both beauty and functionality combining a stunning metal frame and slim, light weight design with the same powerful hardware and features users expect from a flagship Galaxy mobile device.”

So is the new flagship enough to get the Korean giant back on track? The company has been struggling recently as they have lost a lot of market share. While Samsung is still the largest smartphone brand, their market share dropped from 32% to 25%. In China Xiaomi has taken the number one spot from Samsung as the biggest smartphone brand. Samsung is mainly not positioned well in the entry- and mid-range segment but is also facing strong competition in the high-end market from Apple, LG and HTC.

Looking at the specifications for the Galaxy Alpha we don’t think this is the game-changer and innovative device Samsung needed to strengthen their position and outpace competitors. Take the display for example, 4.7” with a resolution of 1280 x 720. The LG G3 comes in at 5.5” and 2560 x 1440. The LG G3 also has a better camera, 13MP compared to the 12MP the Galaxy Alpha offers. The HTC One M8 also features a better display, 5” and 1920 x 1080.

It comes with 32GB of internal memory but a big problem is that it does have memory expansion in form of a micro SD slot something many competitors have.

With the Galaxy Alpha, Samsung has fixed what many consumers saw as their biggest design flaw: the cheap plastic case. But the problem is the Galaxy Alpha does not deliver on the hardware and feature front. Apple is set to release the iPhone 6 on September 9th, from what Samsung has shown today, Apple and other competitors don’t have to be afraid.

 

Overview of specifications:

Network LTE Cat.6 (300/50Mbps)
Display 4.7” HD Super AMOLED (1280 x 720)
AP Octa Core (Quad 1.8GHz + Quad 1.3GHz)
OS Android 4.4.4 (KitKat)
Camera 12MP (rear) + 2.1MP (front)
Camera Features Beauty Face, Dual Camera, HDR (High Dynamic Range), Panorama, Selective Focus, Shot & More, Virtual Tour
Video UHD 4K (3840 x 2160) @30fps Video Codec : H.263, H.264(AVC), MPEG4, VC-1, Sorenson Spark, MP43, WMV7, WMV8, VP8 Video Format : MP4, M4V, 3GP, 3G2, WMV, ASF, AVI, FLV, MKV, WEBM
Audio Audio Codec : MP3, AMR-NB, AMR-WB, AAC, AAC+, eAAC+, WMA, Vorbis, FLAC Audio Format : MP3, M4A, 3GA, AAC, OGG, OGA, WAV, WMA AMR, AWB, FLAC, MID, MIDI, XMF, MXMF, IMY, RTTTL, RTX, OTA
Additional Features Ultra Power Saving Mode
Download Booster
Quick Connect
Private Mode
Google Mobile Service Chrome, Drive, Photos, Gmail, Google, Google+, Google Settings, Hangouts, Maps, Play Books, Play Games, Play Newsstand, Play Movie & TV, Play Music, Play Store, Voice Search, YouTube
Connectivity WiFi: 802.11 a/b/g/n/ac HT80, MIMO(2×2) Bluetooth®: 4.0 BLE / ANT+ USB: USB 2.0 NFC
Sensor Accelerometer, Gyro Sensor, Geomagnetic Sensor, Hall Sensor, Light Sensor, Proximity Sensor ,Gesture Sensor, Fingerprint Sensor, HR Sensor
Memory RAM : 2GB Internal Memory : 32GB No micro SD Slot
Dimension 132.4 x 65.5 x 6.7 mm, 115g
Battery 1,860 mAh

No surprise – Samsung and Apple dominate Smartphone market

According to ABIresearch Samsung and Apple account for the majority of the top 20 smartphone models sold worldwide in Q1 2014.

That is obviously no surprise.

Heavily marketed flagship devices like the iPhone 5s 16GB and Samsung’s Galaxy S4 i9500 16GB top the rankings. “Samsung’s dominance is driven by its market leading 27% market share and despite Apple’s lower market share its small, clearly tiered portfolio creates significant volume for just a few SKUs,” commented Nick Spencer, senior practice director, ABI Research.

Sony, LG, and for the first time, Xiaomi make up the rest of the top 20, with Huawei dropping out. “The much talked about Chinese vendor Xiaomi’s top device by shipment volume is the Redmi, which is now available outside of China, at a very affordable $130,” added Spencer.

The other smartphone vendors are struggling to compete with Apple and Samsung’s huge flagship device marketing budgets, both above the line and in channel. ABI Research expects Huawei and HTC to bounce back in to the top 20 after the launch of their flagship devices the HTC One M8 and the Huawei Ascend P7 in Q2 2014.

“The presence of the Samsung Galaxy S3 i9300 16GB and iPhone 4s 8GB in the top five is testament to the enduring appeal of these models and the vendors strong brand, enabling a long and profitable lifecycle, that other vendors can only dream of,” finished Spencer.

The entire report is available here.