NEW YORK: Worldwide smartphone shipments have leapt by another 11.6 percent compared with the same time last year. Vendors have shipped a total of 337.2 million smartphones in the second quarter of 2015, compared with 302.1 million units in the same period of 2014.
As you may have guessed, it is a combination of both high-end flagships and competitively priced smartphones that are continuing to drive consumer demand.
Turning to the industry leader, Samsung, we actually see a stagnation in shipments from Q2 2014 to Q2 2014, despite apparently strong demand for its new Galaxy S6 smartphones. The issue for Samsung appears to be that it incorrectly estimated demand for its S6 Edge smartphone. Reports from Korea suggest that the company has been trying to fulfil consumer demand but also has a stock of regular Galaxy S6 handset that it can’t sell. Samsung will likely be pinning hope on the upcoming Galaxy Note 5 and S6 Edge Plus to drive sales higher later in the year.
Apple, on the other hand, has seen its shipments increase over the past year, after finally launching a smartphone that caters to consumer demand for larger smartphones. Interestingly, IDC suggest that Apple is also seeing big success in China, as higher earners move from local brands to higher-end models.
The rest of the top five global smartphone vendors are now all Chinese manufacturers, according to ICD. TrendForce awards fifth place to LG. Either way, just like TrendForce’s data from earlier in the week, the consensus is that the most notable shipments gains have come from Chinese brands, such as Huawei and Xiaomi.
Following a tough time with its Galaxy S5, a misjudgement seems to have also cost Samsung with the S6. At the other end, low-cost manufacturers are looking expand away from the Chinese market in search of further growth. There are opportunities to boost sales with low-cost devices in Western markets and whoever gets there first might secure themselves a spot in the top 5 for the coming years.
