Apple and Samsung See Market Share Loss To Huwaei and Lenovo

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Apple and Samsung See Market Share Loss To Huwaei and Lenovo

According to a new research study by Strategy Analytics, Huawei and Lenovo are slowly eating into the global smartphone market share of perennial leaders, Samsung and Apple.

The study said that despite the growth of the smartphone industry, as shown in the increase of handset shipments during the 1st quarter of 2014, Apple and Samsung’s market share decreased.

Over 285 million smartphones were shipped by manufacturers during the 1st quarter of 2014, marking a 33 % increase of the same period of 2013. The study showed that shipments to Asia, showed significant growth, and was enough to make up for the modest volume of shipments to North America.

According to the Senior Analyst of Strategy Analytics, Ken Hyers, ? Smartphone growth was mixed on a regional basis during the quarter, with healthy demand in Asia, counterbalanced by sluggish volumes across North America, due to changes in the operator subsidy mix.?

Samsung kept the leading position with about 89 million handsets shipped, but the electronics behemoth from South Korea saw its market share drop by 1%. The drop, from 32% to 31%, is the first time that this happened to Samsung, since the last quarter of 2009.

The executive director of Strategy Analytics, Neil Mawston, also said that ?Samsung faces tough competition from Apple at the higher-end of the smartphone market and from Chinese brands like Huawei at the lower-end.?

Apple on the other hand shipped about 43.7 million units (iPhone) globally, which translates to approximately 15 % of the global smartphone market. This is a decrease from the 17% share that Apple got during the same period in 2013.

On Apple, Mawston said that ?Apple remains strong in the premium smartphone segment, but a lack of presence in the entry-level category continues to cost it lost volumes in fast-growing emerging markets such as Latin America.?

The combined market share of Samsung and Apple fell from 50% to 47% in the 1st quarter of 2014, and this development is attributed to the increasing competition from secondary players like Lenovo and Huawei, which ate up 5% of the market for this period.

A senior analyst at Strategy Analytics, Linda Sui, said that ?Huawei is expanding swiftly in Europe, while Lenovo continues to grow aggressively outside China into new regions such as Russia….If the recent Lenovo takeover of Motorola gets approved by various governments in the coming months, this will eventually create an even larger competitive force that Samsung and Apple must contend with in the second half of this year.?

Early this year, Google said it will be selling its Motorola Mobility business to Lenovo. Lenovo, a maker of Chinese PCs and a budding player in the smartphone arena, is reportedly paying Google US$ 2.91 billion dollars for the Motorola unit. The purchase will give Lenovo the Motorola brand name, and its existing line of devices, while Google will keep ownership and control of the numerous patents it obtained from Motorola, when it purchased the company for US$ 12.5 billion dollars in 2012.


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