Smartphone Leaders See Growth
August 4, 2017
to preliminary results from the International Data Corporation
(IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone OEMs
shipped a total of 341.6 million smartphones worldwide in the
second quarter of 2017 (2Q17). Coming off a higher than expected
first quarter, smartphone shipments declined 1.3% from the same
quarter a year ago and were down 0.8% from 1Q17.
While the smartphone industry contracted slightly in the second
quarter, it is worth noting that the leading vendors all saw
positive shipment growth. Samsung and Apple both held shares
relatively constant from the second quarter a year ago, while
the other three vendors rounding out the top 5 – Huawei, OPPO,
and Xiaomi – all grew shares. The one change in terms of ranking
within the top 5 was Xiaomi slightly outpacing vivo, but not by
"In my opinion, the biggest change in the second quarter is the
size of the contraction among the 'Others' outside of the top 5
OEMs," said Ryan Reith, program vice president with IDC's
Worldwide Quarterly Mobile Device Trackers. "It's no secret that
the smartphone market is a very challenging segment for
companies to maintain or grow share, especially as already low
average selling prices declined by another 4.3% in 2016. The
smaller, more localized vendors will continue to struggle,
especially as the leading volume drivers build out their
portfolio into new markets and price segments."
As we look toward the second half of 2017, IDC expects to see
two quarters of positive year-over-year growth, leaving 2017 as
a rebound year. Samsung is riding momentum from the Galaxy S8
products, with the presumed August announcement of the Note 8
right around the corner. In parallel, anticipation continues to
build for the next round of iPhones that the industry expects
Apple to announce in September. Outside of these two industry
leaders, the companies to watch will continue to be the next
three to five OEMs and how they navigate to position themselves
in growing markets.
"Despite some key launches in the second quarter from some
well-known players, all eyes will be on the ultra-high-end
flagships set to arrive this fall," said Anthony Scarsella,
research manager with IDC's Worldwide Quarterly Mobile Phone
Tracker. "With devices like the iPhone 8, Pixel 2, Note 8, and
V30 in the pipeline, the competition will be fierce come
September. We expect all the key players to promote their latest
and greatest flagships with an assortment of deals, bundles, and
trade-in offers across a variety of channels in most key
Smartphone Company Highlights
Samsung remained the leader in the worldwide smartphone market
grabbing an impressive 23.3% share and 1.4% growth. The new S8
and S8+ played an important role in the quarter as the flagship
brought a new design and screen aspect ratio (18:9) to the
table, which could transform the industry in the months ahead.
Consumers have responded well to the edge-to-edge display, and
we expect numerous other vendors to bring out similar designs
heading into next year. Outside of the S8/S8+, Samsung continues
to perform well at the mid-to-low end with its "A" Series and
"J" Series devices. Much like Apple, all eyes will be on the
next big thing as the Note 8 will look to permanently erase all
memories of the Note 7 debacle from last year.
Apple shipped 41.0 million iPhones in the second quarter
representing mild 1.5% year-over-year growth from the 40.4
million units shipped last year. The iPhone continues to perform
well at the high end as the 7 Plus outperformed the 6S Plus from
one year ago. The iPhone 7 and 7 Plus combined delivered
double-digit growth at a worldwide level, which helped grow
average selling prices (ASPs) by 2% despite foreign exchange
headwinds. All eyes will be on the iPhone 8 come September as
Apple is expected to bring new features such as a larger AMOLED
display, wireless charging, and increased performance and
durability. The all new model is supposed to join a new 7S, and
7S Plus come the fall.
Huawei captured the third position once again thanks to strong
sales in greater China as well as in many developed European
markets. The Chinese giant witnessed 19.6% year-over-year growth
and improved its market share by two full percentage points
compared to the second quarter of last year. Huawei's mid-range
and high-end models continue to prove successful along with the
flagship P10, Mate 9, and the more affordable Honor series.
Looking ahead, Huawei will still need to successfully penetrate
the U.S. market at the carrier level if it wishes to surpass
either Apple or Samsung at the top.
OPPO remained in the fourth position with worldwide shipments of
27.8 million units and moving its overall share up 1.5
percentage points to 8.1%. The Chinese brand continues to expand
its international business, leading with many markets in
Southeast Asia. During the quarter, it expanded its number of
service centers in India and added its new exclusive retail
outlets as well. In Thailand, OPPO continued to expand its
channels and advertisements with billboards across the country.
It also partnered with one of the local operators to offer the
A37 for free, which directly helped to grow its customer base.
Xiaomi moved back into the top 5 worldwide with year-over-year
growth of 58.9%, edging slightly ahead of vivo. Xiaomi has been
very aggressive in the India market, expanding its offline
presence by launching its first Mi Home store and partnering
with key large format retailers to increase its retail
footprint. It has also doubled the number of service centers in
the past six months as it continues with its strong
below-the-line marketing activities.
Quarterly Smartphone Market, Top 5 Company Shipments, Market
Share, and Year-Over-Year Growth, Q2 2017 (shipments in
millions of units)
||2Q17 Shipment Volume
||2Q17 Market Share
||2Q16 Shipment Volumes
||2Q16 Market Share
IDC Worldwide Quarterly Mobile Phone Tracker, August 2, 2017
IDC Worldwide Quarterly Mobile Phone Tracker, August 2, 2017
•Data is preliminary and
subject to change. Some IDC estimates were made prior to
financial earnings reports.
•Company shipments are
excluding OEM sales for all companies.
•The "Company" represents the
current parent company (or holding company) for all brands owned
and operated as subsidiary.