Phone

Samsung extends the gap as the world’s largest smartphone vendor

After publishing the India-specific report last week, Strategy Analytics has now released the global smartphone shipment data for Q2 2019. According to the report, Samsung shipped 76.3 million smartphones worldwide in Q2 2019, jumping 6.7% annually from 71.5 million units in Q2 2018. Global smartphone shipments, however, fell by 2.6% to 341.4 million units from 350.4 million units a year earlier.

Extends the gap at the top

Samsung’s overall Q2 2019 business may not look good, but its smartphone business is faring better, at least in terms of shipments. The company closed the gap with Xiaomi as the largest smartphone vendor in India. The surge was driven by strong sales of its new Galaxy A and M series smartphones. And this has reflected on the company’s global smartphone business as well.

Samsung led the global smartphone shipments in Q2 2019 with a 22.3% market share, extending the gap from the second-placed Huawei. The Chinese company held 17.2% of the market during the period. Samsung’s market share increased by 1.9% annually against Huawei’s 1.7% . Apple, Xiaomi, and Oppo make up the top five smartphone vendors with 11.1%, 9.4%, and 8.7% market share respectively.

Despite selling more handsets, Samsung’s profit margin has declined in Q2 2019 due to aggressive pricing. Whether Samsung improves on that in the second half of the year remains to be seen. The company has several budget and mid-range phones, as well as two flagships – the Galaxy Note 10 and the Galaxy Fold – in the pipeline for Q3 2019 release.

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Gunter2
Gunter2

Huawei, 17.2%……Apple 11.1% Xiaomi and Oppo 9.4% and 8.7%. Within a year or two Xiaomi and Oppo will overtake Apple and push them into 5th. I think Apple were at 14.5% until a year ago. That’s a huge drop. Good to see Samsung widening the shipments gap at the top.

locarno
locarno

But Samsung profits decreaseing due to low prices.

Gunter2
Gunter2

That’s right. This is related to two issues. The market for memory and other components has slowed down, which is outside anyone’s control. But it’s not just that. It’s also about regaining the market share. They are aggressively pricing the mid range phones like the A series so profit is lower on each device and 80% of people don’t buy flagships. I think they’re likely taking the long term view of regaining their dominance in the market. Of course they’re talking about Samsung Electronics who lost money, which is just a very small part of the Samsung Corporation who literally… Read more »