South Korea’s largest smartphone maker Samsung Electronics saw a decline in market share and shipment in the global smartphone market in the second quarter of this year, according to the industry data.
Samsung was the only smartphone maker, which saw a drop in shipment among the top five smartphone manufacturers, according to the latest report done by a market research firm IDC.
IDC’s report said the global smartphone shipment in the second quarter rose 11.6 percent from the same period of last year to 337 million units. Samsung sold 73 million units (21.7 percent), Apple 47 million (14.1 percent), Huawei 29 million (8.9 percent) Xaiomi 17 million (5.3 percent) and Lenovo 16 million (4.8 percent).
Samsung Electronics saw a 2.3 percent decline in its shipment and 3.1 percent drop in its market share from the same period of last year.
IDC said though the supply of Samsung's flagship smartphone Galaxy S6 Edge did not meet the demand, its old Galaxy models sold well due to a big discount and promotional activities.
The runner-up Apple's shipment increased 34.9 percent and market share 2.4 percent from the previous year. On the back of its bigger screen and the fast penetration of fourth generation communications network in China, Apple is expected to have a stronger foothold in the Asian Pacific region, the research firm said.
The performance of Samsung's Galaxy S6 is not higher-than-expected, yielding its top position to Apple's iPhone6. A market research firm Counterpoint Research said Samsung's Galaxy S6 Edge saw a brief spike in popularity due to its supply shortage and high price. In the global smartphone market, there has been a similar competition pattern between Samsung and Apple. Apple normally launches its new products in September to have dominant power during the fourth and first quarters while Samsung reclaims the top position during the second and third quarters with the launch of new products in the second quarter. However, this time, the huge popularity of iPhone 6 broke the repeating pattern.
Chinese companies are also pressuring Samsung Electronics. Huawei, Xiaomi and Lenovo ranked third, fourth and fifth. The market share of the three combined increased 2.5 percent to 19 percent.
IDC said Huawei's shipment rose 48.1 percent as its smartphones sold well in China and European countries. Both of its high-end and low-end products are well-received in both consumer and commercial markets.
Industry watchers said that Chinese firm's advanced technologies and marketing market are expected to further threaten Samsung Electronics. Some even predicted that the supremacy of the global smartphone market is moving to Chinese firms from Samsung and Apple.
Huawei's head of consumer business Richard Yu said, "More and more consumers are buying Huawei's high-end smartphones. The profit of our smartphone business will rise double compared to the previous year."
The breakthrough of Huawei is that it boldly worked out high and mid-end strategies while other Chinese firms are relying on cost-competitiveness and the local market, shedding the image that "Made in China is cheap-looking."
Huawei is now strengthening its partnership with Google and set to produce Google's reference phone Nexus this year for the first time among Chinese smartphone makers.
Xiaomi's shipment also increased 29.7 percent as its smartphones are favored in China and expanding its presence in India and other Southeast Asian countries. Its Mi Note is the second-best seller in China and the sixth in the global market. By obtaining intellectual property, it is making forays into other regions including Brazil.
"When global presence of Chinese firms including Huawei becomes stronger, they can be new threats to Samsung and Apple," Wall Street Journal reported.
