The global smartphone market has continued to undergo significant changes in the second quarter of the year, with Chinese Android OEMs Huawei, Oppo, and Xiaomi closing the gap with long-time leaders Samsung and Apple. According to analyst Canalys’ latest reports, Huawei is now nipping at Apple’s heels, shipping 38 million units in the quarter compared to Apple’s 41 million iPhones.
Huawei Closes Gap with Apple
Canalys reported that Huawei shipped 38 million units in the second quarter, a year-over-year growth of 20%. This significant increase has helped the Chinese OEM close the gap with Apple, which shipped 41 million iPhones during the same period. Despite anticipation building for a major iPhone refresh later this year, Apple’s sales were not significantly impacted.
Oppo and Xiaomi Experience Rapid Growth
The top performers in the quarter were Oppo and Xiaomi, who took fourth and fifth spots respectively, with shipments growing by 44% and 52%. These Chinese OEMs have been gaining ground in recent quarters and are now challenging Samsung’s dominance in the Android market.
Samsung Continues to Lead but Faces Challenges
Despite shipping over 79 million units in the quarter, Samsung’s year-over-year growth was relatively flat. The company is facing challenges from faster-growing Android OEM rivals, which are working against premium pricing in the Android space. Canalys’ senior analyst Tim Coulling noted that "shipments of the [Samsung Galaxy] S8 have been strong in some regions, but there are signs that demand has been overestimated."
Inventory Buildup and Discounting in Europe
Canalys’ channels research revealed inventory buildup in Europe, which, combined with discounting in the US, suggests that Samsung may be testing the limits of Android smartphone pricing. This development could limit Apple’s room for making upward price maneuvers when it refreshes the iPhone.
Apple Faces Challenges as Well
As Apple prepares to refresh the iPhone, it must justify any significant price increases with tangible improvements to both feature set and design. Canalys’ Coulling noted that "even with its unique user experience, it too must justify any significant price increases with tangible improvements."
Global Smartphone Market Remains Dynamic
The global smartphone market shipped over 340 million units in the second quarter, an increase of almost 4% year on year. While the analyst noted that smartphone markets in India and China both slipped into decline in the quarter, North America saw a 7% increase in shipments, with Apple growing iPhone sales by 10%.
Market Share Analysis
The market share analysis shows:
- Samsung: 23.2%
- Huawei: 15.4%
- Apple: 13.3%
- Oppo: 9.5%
- Xiaomi: 7.4%
Conclusion
The global smartphone market continues to evolve, with Chinese OEMs closing the gap with long-time leaders Samsung and Apple. As the market becomes increasingly competitive, manufacturers must continue to innovate and differentiate themselves to remain ahead of the competition.
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