Samsung loses share in smartphones

Samsung’s march toward smartphone dominance has taken a pause.

In the first quarter, the company’s market share actually slipped slightly, according to a new report by market research firm Strategy Analytics. It marked the first time since 2009 that the Korean electronics giant had lost share in the smartphone market.

“Samsung continues to face tough competition from Apple at the higher-end of the smartphone market and from Chinese brands like Huawei at the lower-end,” said Neil Mawston, Strategy Analytics’ executive director, in a statement.

The Galaxy phone maker shipped 89 million smartphones in the first quarter, up from 69.4 million in the same period a year earlier, good for 28 percent annual growth. But that pace trailed that of the larger market, which grew 33 percent over the same period.

As a result, Samsung’s share fell from 32.4 percent in the first quarter of 2013 to 31.2 percent in the same period this year.

That was still better than chief-rival Apple’s performance. Apple shipped 43.7 million iPhones in the first quarter, which was up about 17 percent from the 37.4 million in shipped in the same period in 2013. With growth about half that of the broader market, Apple’s share fell to 15.3 percent from 17.5 percent a year earlier.

Mawston blamed Apple’s share decline on a lack of low-priced phones.

“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,” he said in the statement.

Of the top 4 vendors, only fourth-place Lenovo gained share year-over-year. The company’s shipments grew from 8.4 million in the first quarter a year ago to 13.3 million in the just-completed period. Thanks to that growth, the company’s share rose from 3.9 percent to 4.7 percent of the market over the same period.

“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,” Mawston said.

Third-place Huawei held steady with 4.7 percent of the market. The share held by all other smartphone vendors, which includes companies such as HTC, Motorola and ZTE, rose from 41.5 percent to 44.1 percent.

Samsung recently released a new flagship device, the Galaxy S5. Apple is rumored to have in development a larger-screened phone tentatively called the iPhone 6 that is expected to be released later this year.


Photo courtesy of Samsung


Tags: , , , , , , , , , , , ,


Share this Post

  • No doubt Samsung is facing tough competition from apple. Therefore, there stock price is abating again and again after 2009. The present stock price is