Samsung & Apple lose smartphone market share as Chinese brands continue to grow

Huawei Narrows Gap With Samsung Apple in Smartphone Sales Gartner

Gartner on Tuesday revealed that nearly 380 million smartphones were sold during the first three months of 2017, up from 348 million this time past year, with Chinese firms Huawei, Oppo and Vivo accounting for nearly a quarter of these sales. The market share of Chinese brand Huawei's increased to 9 percent from 8.3 percent. All in all, Huawei sold around 34 million units, Oppo grew 94.6 percent, and Vivo sold around 26 million units - Vivo's market share also skyrocketed by 220 percent in the Asian and Pacific markets.

"Although Samsung announced that pre-orders for the Galaxy S8 and S8 Plus are up 30% year over year, the absence of an alternative to Note 7 and the fierce competition in the basic smartphone segment are leading Samsung to continuously lose market share", said Anshul Gupta, research director at Gartner.

Huawei, the third biggest smartphone maker with a nine percent share, saw its recent explosive growth eroded by its Chinese rivals. More than 327.16 million Android-based devices were sold worldwide, compared to 51.99 million on the Apple iOS. Android's continued growth is due to the increasing acceptance of the OS by Chinese brands that have manufactured high-end smartphones. "Similar to Samsung, Apple is increasingly facing fierce competition from Chinese brands Oppo and Vivo, among others, and its performance in China is under attack".

And while Samsung still leads the market with sales of 79 million for the quarter, sales declined 3.1% over the three months.




Apple's market share dropped to 13.7 per cent from 14.8 per cent. Although Huawei is getting closer to Apple's numbers, it's also under pressure from competing Chinese brands. With the Huawei P10 and P10 Plus, the phone maker could continue doing well in the second quarter. This trend had benefitted China's domestic manufacturers including Huawei, Oppo, and Vivo, which built on their strategy to offer affordable devices with features that users wanted, the research firm said.

According to Gartner's latest report, Android will likely see further growth thanks to Google's announcement last week of Android Go.

In terms of operating systems, Android and iOS continue to dominate the market, with Android being used on 86.1 percent of all smartphones. iOS, on the other hand, is now running on 13.7 percent of smartphones. Now Gartner also reported that three Chinese companies, Huawei, OPPO, Vivo are showing significant growth in the market shares as compared to past year.

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