Published: Sun, November 04, 2018
Electronics | By Kelly Massey

Handset makers experience fourth consecutive quarter with declining YOY smartphone shipments

Handset makers experience fourth consecutive quarter with declining YOY smartphone shipments

Global smartphone shipments declined 3 percent annually, recording 386.8 million units in the third quarter according to Counterpoint's Market Monitor service.

He attributed the lack of meaningful innovation and improvement in smartphone build quality as one of the reasons for longer replacement cycles, which in turn has reduced global sales.

Counterpoint Research associate director Tarun Pathak commented: "Despite the decline in its home market, Chinese brands OPPO, vivo and Xiaomi reached new highs in smartphone shipments in a quarter".

"China's domestic market continues to be challenged as overall consumer spending around smartphones has been down", said Ryan Reith, program vice president with IDC's Worldwide Mobile Device Trackers.

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Samsung is still the world's biggest manufacturer with 70.9 million shipments, but this is down 15 per cent year-on-year with the firm's market share falling to 20 per cent amid intense competition from Chinese firms. It shipped 52 million devices, up from 39.1 million units in the same quarter past year, thanks to its P and Mate lineups and the phones offered by its Honor sub-brand. For the second quarter in the a row, Huawei was able to come out ahead of Apple and secure the number two position behind Samsung, though its market share was down slightly from Q218. OPPO rounds out the top five with 8.4% market share - a small increase over Q3 2017 - despite decreased shipment volume. This despite the company's troubles entering the USA market and the slump of the global smartphone industry.

USA research firm IDC says a total of 355.2 million smartphones were shipped during the quarter.

Huawei smartphones had soared by 32.9% in the third quarter to beat its competitor, Apple with a revenue of 52 million and a market share of 14.6 %.

Although some emerging markets, like India, have demonstrated double digit growth, this was not sufficient to compensate for the decline in sales in developed markets, he added. However, this also presents long-term growth opportunities for OEMs with many entering such markets to grow their sales. Research Analyst Shobhit Srivastava explained that Chinese players are leading the way into the emerging markets as they venture out to capture sales.

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