Consumer Electronics
3 of World's Leading Smartphone Vendors Are Now Chinese
Published:
The reasons for Apple Inc. (NASDAQ: AAPL) and Samsung to look over their shoulders in the smartphone business have increased since their current product lines have aged. Each has another reason for anxiety. According to research firm Strategic Analytics, three of the world’s top smartphone vendors are Chinese.
In specific, the firm’s researchers wrote:
- Xiaomi became the world’s 5th largest smartphone vendor for the first time ever in Q2 2014;
- Three of the world’s top 6 smartphone vendors are now Chinese brands (Huawei, Lenovo and Xiaomi);
- Huawei reached a record 7% global smartphone marketshare.
The industry continues to expand very rapidly:
Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments grew 27 percent annually from 233.0 million units in Q2 2013 to 295.2 million in Q2 2014. Smartphone growth was mixed on a regional basis during the quarter, with healthy demand in Asia and Africa counterbalanced by sluggish volumes across North America and Europe due to changes in the operator subsidy mix.”
ALSO READ: Huawei Success Threatens iPhone Sales
Samsung and Apple are still the top two vendors, but their dominance is slipping. In the second quarter of this year, Samsung shipped 74.5 million smartphones, down from 76.0 million in the same quarter a year ago. The numbers have caused experts and investors to believe that Samsung’s hot hand in the business has disappeared. Apple did not do much better in the period. Its shipments in the second quarter of 2013 were 31.2 million, and rose to only 35.2 million in the most recent quarter. Samsung’s market share was 32.6% in the second quarter of last year, and it has dropped to 25.2%. Apple’s was 13.4% and has fallen to 11.8%.
In the meantime, Huawei’s unit sales rose from 11.1 million to 20.2 million, Lenovo’s were up from 11.3 million to 15.8 million and Xiaomi’s rose from 4.1 million to 15.1 million. The information shows that the smartphone market is better analyzed as a regional business than a global one, with China at the center of the world, due to its population and the expansion of 4G service. Strategic Analytics pointed this out:
Woody Oh, Director at Strategy Analytics, said, “Xiaomi was the star performer in the quarter, capturing a record 5 percent marketshare and rising into fifth place in the global smartphone rankings for the first time ever. Xiaomi’s Android smartphone models are wildly popular in the Chinese market and it shifts millions of them every quarter through its extensive online and operator channels. Xiaomi’s next step is to target the international market in Asia and Europe, where it will have to invest big money to familiarize western consumers with its unfamiliar brand name. LG held sixth place for 5 percent global smartphone share and a record 14.5 million units shipped. LG is performing relatively well in the United States and Europe, but it continues to lag in the huge China and India markets.”
So, even if the iPhone 6 is a massive success as measured by global sales, it needs to do well in China to be a complete success.
ALSO READ: 450 Million Chinese Never Go Online
Global Smartphone Vendor Shipments and Marketshare in Q2 2014
Global Smartphone Vendor Shipments (Millions of Units) | Q2 ’13 | Q2 ’14 |
Samsung | 76.0 | 74.5 |
Apple | 31.2 | 35.2 |
Huawei | 11.1 | 20.1 |
Lenovo | 11.3 | 15.8 |
Xiaomi | 4.1 | 15.1 |
LG | 12.1 | 14.5 |
Others | 87.2 | 120.0 |
Total | 233.0 | 295.2 |
Global Smartphone Vendor Marketshare % | Q2 ’13 | Q2 ’14 |
Samsung | 32.6% | 25.2% |
Apple | 13.4% | 11.9% |
Huawei | 4.8% | 6.8% |
Lenovo | 4.8% | 5.4% |
Xiaomi | 1.8% | 5.1% |
LG | 5.2% | 4.9% |
Others | 37.4% | 40.6% |
Total | 100.0% | 100.0% |
Total Growth Year-over-Year % | 48.9% | 26.7% |
Source: Strategy Analytics |
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.