Smartphone Market Swells: Shipment Battle Between Samsung And Apple Continues

The global smartphone market exploded 11.6 percent in the second quarter from the same period last year, according to market research firm IDC, dominated by premium handset competitors Samsung and Apple.

Anthony Scarsella, research manager for IDC's mobile phone team, said the blowout success of smartphones this past quarter was because of dual demand -- for both premium devices on the high end and entry-level handsets in emerging markets.

’Key flagship devices for Samsung, Apple, LG and others helped elevate shipments, but more importantly the plethora of affordable handsets that continue to drive shipments in many key markets was a huge contributing factor,’ Scarsella told CRN. ’Samsung once again faced fierce competition in China, both at the low end and high end of the market. Pressure from competing devices from Xiaomi, Huawei, Lenovo and other local vendors, which feature similar specs at lower price points, hindered Samsung’s market share in China and other emerging markets.’

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Overall, the global smartphone market saw 337.2 million shipments, up 11.6 percent from the same quarter last year -- and the second highest number of shipments ever recorded in a quarter, according to IDC.

The market in the second quarter was led by South Korean company Samsung, which took 21.7 percent of the quarter's market share with its premium Galaxy handsets.

Trailing behind Samsung was Apple, which took 14.1 percent of the market share and whose iPhone shipments continued to dominate in China because of the demand for larger screens and the expansion of 4G networks.

The smartphone market was rounded out by vendors whose midrange and entry-level devices made a splash in emerging markets, like India and Southeast Asia -- Huawei, Xiaomi and Lenovo.

Despite its longtime dominance of the market, Samsung still faced a 2.3 percent decline in shipments for the second quarter from the same quarter a year ago, which was especially surprising given the company's release of the Galaxy S6 and Galaxy S6 Edge in April.

According to IDC, the Galaxy S6 was problematic because of a limited supply of the Edge models that did not keep up with demand. However, shipments of older Galaxy models buoyed Samsung because of deep discounts and promotions throughout the quarter, said IDC.

Douglas Grosfield, president and CEO of Xylotek Solutions, a Cambridge, Ontario-based solution provider, said the channel needs to "keep their fingers on the pulse" of the smartphone market by growing their mobile practices, as well as offering device management and security options for enterprise customers.

"The global smartphone market is still in a honeymoon phase, given the rapid penetration of emerging markets geographically," he said. "Established and developed markets often see the premium smartphone sales higher than in emerging markets, where less expensive smartphone offerings are leading sales volumes . … This trend will continue, as emerging market penetration continues, and as some degree of saturation begins to occur, we will see providers refocusing on services and associated products to augment the offerings available to their growing client base, as we see in developed markets."

In the coming quarter, Samsung and Apple are expected to continue pushing forward in the high-end market with products and refreshes in the mobile space. While Apple will drive upgrades with refreshed "S" models for its iPhones, Samsung is rumored to be planning to release its Note 5 and a Galaxy S6 Edge Plus in August.

PUBLISHED JULY 23, 2015