Chinese Vendors Outpace the Market as Smartphone Shipments Grow 23.1% Year over Year in the Second Quarter, According to IDC

Views tracker viewed for user 10198
IDC's picture
Printer-friendly versionPrinter-friendly version



29 Jul 2014

FRAMINGHAM, Mass. July 29, 2014 – The worldwide smartphone market grew 23.1% year over year in the second quarter of 2014 (2Q14), establishing a new single quarter record of 295.3 million shipments, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. Following a very strong first quarter, the market grew 2.6% sequentially, fueled by ongoing demand for mobile computing and an abundance of low-cost smartphones. Second quarter shipments were in line with IDC's forecast and all expectations are that the market will continue apace in the second half of the year and surpassing 300 million units for the first time ever in a single quarter in 3Q14.

"A record second quarter proves that the smartphone market has plenty of opportunity and momentum," said Ryan Reith, Program Director with IDC's Worldwide Quarterly Mobile Phone Tracker. "Right now we have more than a dozen vendors that are capable of landing in the top 5 next quarter. A handful of these companies are currently operating in a single country, but no one should mistake that for complacency – they all recognize the opportunity that lies outside their home turf."

Despite a challenging quarter for Samsung, and to a lesser extent Apple, the strong market demand boosted results for most smartphone vendors. Emerging markets supported by local vendors are continuing to act as the main catalyst for smartphone growth. Among the top vendors in the market, a wide range of Chinese OEMs more than outpaced the market in 2Q14. By far the most impressive was Huawei, nearly doubling its shipments from a year ago, followed by another strong performance from Lenovo.

"As the death of the feature phone approaches more rapidly than before, it is the Chinese vendors that are ready to usher emerging market consumers into smartphones. The offer of smartphones at a much better value than the top global players but with a stronger build quality and larger scale than local competitors gives these vendors a precarious competitive advantage," said Melissa Chau, Senior Research Manager with IDC's Worldwide Quarterly Mobile Phone Tracker.

Smartphone Vendor Highlights:

Samsung saw the Galaxy S5 ship millions of units this quarter, despite the criticisms leveled at it, while S4 and even S3 volumes remained strong as more affordable alternatives. Collectively Samsung lost 7% market share compared to a year ago, despite having one of the largest smartphone portfolios of all OEMs. To maintain its position at the top, Samsung will need to focus on building momentum in markets dominated by local brands.

Apple's second quarter is always its seasonal low of the year, but even more so this time in advance of the iPhone 6, with consumers holding their collective breath for the long-awaited bigger screens. Apple enjoyed continued success in the BRIC markets, a good sign that it is building its footprint in emerging markets. Given the pent-up demand, the third quarter could be a drought or a flood, depending on the timing of the next launch.

Huawei's story centered on 4G LTE pick up, particularly in China, as all three national carriers subsidized 4G handsets like the P7 to encourage consumers to upgrade from 3G. Outside of China, large volumes of its lower-cost Y series fueled growth across most regions. The company continues to focus on broadening its global reach and the 2Q14 results show that the momentum is undoubtedly there.

Lenovo had a record quarter in China despite tremendous pressure from local brands. During the quarter, Lenovo saw increased success from the A788T, as well as the 3G A388T. And while its Motorola acquisition is undergoing approval, Lenovo continued to gain traction in international markets. While less than 5% of Lenovo's shipments were registered outside of China in the second quarter of 2013, this share nearly tripled in 2Q14, with emerging markets, particularly BRIIC countries, picking up the largest volumes.

LG volumes were largely driven by its L series, helped by models like the L70, which performed well in many markets including the United States. With the G3 launched at the end of the quarter in Korea, greater volumes are expected to show up in the third quarter.

 

 



Top Five Smartphone Vendors, Shipments, and Market Share, 2014Q2 Preliminary Results (Units in Millions)

Vendor

2Q14 Shipment Volume

2Q14 Market Share

2Q13 Shipment Volume

2Q13 Market Share

2Q14/2Q13 Growth

1. Samsung

74.3

25.2%

77.3

32.3%

-3.9%

2. Apple

35.1

11.9%

31.2

13.0%

12.4%

3. Huawei

20.3

6.9%

10.4

4.3%

95.1%

4. Lenovo

15.8

5.4%

11.4

4.7%

38.7%

5. LG

14.5

4.9%

12.1

5.0%

19.8%

Others

135.3

45.8%

97.5

40.6%

38.7%

Total

295.3

100%

240.0

100%

23.1%



Source: IDC Worldwide Quarterly Mobile Phone Tracker, July 28, 2014

Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors. The vendor names here reflect the parent company name, where Microsoft owns Nokia. Motorola shipments will be counted under Lenovo once legal approval is obtained.

 

 

This chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic are available by clicking here.

 

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

News Source : Chinese Vendors Outpace the Market as Smartphone Shipments Grow 23.1% Year over Year in the Second Quarter, According to IDC
Copy this html code to your website/blog to embed this press release.

IDC Press Release

Post date
01/21/2016 - 11:40 IDC Asia/Pacific releases its IT Services Predictions for 2016 and beyond, starting with Cloud First and Digital Transformation expectations
01/21/2016 - 11:27 Worldwide Spending on 3D Printing Forecast to Grow at a Compound Annual Rate of 27% to More Than $26 Billion in 2019, According to IDC
01/21/2016 - 10:14 Worldwide Public Cloud Services Spending Forecast to Double by 2019, According to IDC
01/21/2016 - 03:22 IDC and SingEx Exhibitions Launch the Inaugural ITEX ASIA in Singapore
01/21/2016 - 03:17 The Asia/Pacific PC Market Dipped 8% in 2015, Will Continue to Face Challenges Ahead in 2016
01/19/2016 - 15:19 New IDC MarketScape Evaluates Product Innovation and PLM Solutions Providers for Retail Brands
01/19/2016 - 13:57 Cloud Environments Will Account for a Third of Worldwide Spending on Enterprise IT Infrastructure in 2015, Led by Growth of Public Cloud Datacenters, According to IDC
01/18/2016 - 01:08 IDC predicts data-driven organizations to achieve extra USD65 billion in productivity benefits by 2020
01/15/2016 - 06:46 IDC Comment: BT & EE: UK regulator approves merger unconditionally
01/14/2016 - 07:16 EMEA Purpose-Built Backup Appliance Market Revenue at $217.5M in 3Q15, According to IDC
01/14/2016 - 04:39 Worldwide Cloud IT Infrastructure Spend Grows 23.0% to $7.6 Billion in the Third Quarter, According to IDC
01/13/2016 - 21:05 EMEA Big Data Datacenter Infrastructure Market to Triple by 2019, Reaching $5.4B, Says IDC
01/13/2016 - 20:09 IDC Energy Insights Evaluates Providers of Meter Data Management Software in EMEA
01/13/2016 - 11:43 IDC MaturityScape Helps Organizations Optimize Their Print Security Strategy
01/12/2016 - 11:57 PC Market Finishes 2015 As Expected, Hopefully Setting the Stage for a More Stable Future, According to IDC
01/11/2016 - 22:14 IDC Health Insights Bolsters European Team
01/11/2016 - 21:49 IDC Hires Seasoned Industry Analyst to Spearhead Cognitive Systems Spending Guide
01/11/2016 - 21:35 IDC Survey Reveals More Than 40% of Line-of-Business Executives View CIO as Innovation Officer
01/08/2016 - 20:36 IDC Notes Mixed Results on the EMEA WLAN Market in Q3 2015
01/07/2016 - 16:04 Smart Cities & Digital Transformation Take Center Stage at IDC's IT Forum in Doha
Copy and paste this code to display this page on your website .
Syndicate content