Gartner: Samsung Electronics Ranks No. 1 in Global Market Share, Chinese Companies Record Best Performance

Smartphone sales in the second quarter totaled 366.2 million units, up 6.7% from the same period last year.

According to Gartner Inc.'s recent announcement of global smartphone sales to end users in the second quarter, Android expanded its lead in the smartphone operating system (OS) market with an 87.7% market share, while iOS held 12.1%.

“While demand for utility smartphones remains strong, there is growing demand in emerging markets for 4G smartphones with ample storage, more efficient processors, and enhanced cameras,” said Anshul Gupta, principal research analyst at Gartner. “This trend is leading to increased demand for mid-range smartphones priced between $150 and $200.”

While smartphone sales in the second quarter grew across the board compared to the same period last year for all models, concerns are being raised regarding increased component costs due to a reduction in key parts and supply shortages. Anshul Gupta, a manager, stated, "Shortages of flash memory and OLED displays are expected to impact the supply of premium smartphones in the second half of 2017," adding, "The Huawei P10 has already been hit by a flash memory shortage." He explained, “In the premium smartphone sector, smaller established companies such as HTC, LG, and Sony are caught between aggressive Chinese competitors and the dominant Samsung and Apple.”

Samsung smartphone sales rebounded after three consecutive quarters of decline, growing 7.5% year-on-year. Although Samsung took a major hit due to the Galaxy Note 7 debacle, demand for Samsung smartphones is shifting back to a high upward trend thanks to the strong performance of the Galaxy S8 and S8+. Amid fierce competition from Chinese manufacturers such as Huawei, OPPO, and Vivo, Samsung projected that it would record growth in 2017.

Apple's sales volume in the second quarter of 2017 showed almost no change, with a slight decrease of 0.2% year-over-year, despite clearing out 3.3 million iPhone units in inventory through distribution channels. Principal Analyst Anshul Gupta predicted, "Apple is expected to see sales growth in emerging markets where previous generation iPhone models are showing steady demand," adding, "The new iOS 11, featuring augmented reality (AR), machine learning, an improved Siri, and a new display design, will boost iPhone sales in the fourth quarter of 2017 and drive Apple's overall revenue growth for 2017."

Vivo and Oppo recorded their best performance in the second quarter of 2017, showing rapid growth of 70.8% and 44.1%, respectively, compared to the same period of the previous year. Vivo pioneered a niche market by equipping smartphones with dual cameras on the front. Researcher Gupta stated, “Vivo maintained its second-place position in China and saw increased sales globally.” Similarly, Oppo continued to establish itself as a leading company in China by introducing products equipped with rear and front dual cameras.

Half of global smartphone sales come from Greater China and emerging Asia-Pacific markets

Greater China and emerging Asia-Pacific markets led the growth of global smartphone sales in the second quarter of 2017, recording market shares of 27.7% and 21.4%, respectively.

Smartphone sales within the emerging Asia-Pacific market group increased year-on-year due to the expansion of smartphone penetration in India, Indonesia, and Southeast Asian countries.
However, in the Greater China region, sales declined year-on-year due to extended smartphone replacement cycles and a growing user preference for better devices. Regarding this, analyst Gupta explained, "Large manufacturers are strengthening their position by expanding their market share within the Greater China region, while small businesses are losing ground."

Smartphone sales in Western Europe showed growth compared to the same period last year, driven by the performance of Huawei and Samsung products.