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Chinese manufacturers grew while Samsung struggles to hold on in terms of smartphone sales to end users

Manufacturers like Oppo, Huawei, and BBK Communication Equipment gained big especially from China.

In a recent survey by Gartner, Chinese vendors such as Huawei, Oppo and BBK Communication Equipment have up the game in terms of smartphone sales accounting about 21 percent of the smartphones sold to end users worldwide in Q3 2016. Samsung, on the other hand, suffered, thanks to the Galaxy Note 7 episode.

Further, manufacturers like Oppo and BBK Communication Equipment exploited the 12.4 percent growth in sales of smartphones in China. While in case of Oppo, about 81 percent of sales came from China, in case of BBK Communication Equipment about 89 percent of smartphone sales came from China. Gartner also reports that these vendors also attracted a lot of sales from countries like India, Malaysia, Thailand and Russia.
Coming to the global smartphone sales, it accounted to a total of 373 million units showing a 5.4 year-on-year growth. Contrary, the overall mobile phones sales declined by 1.3 percent due to continuous decline in sales of feature phones.

If talking about the number of units and market share, Samsung led the list with 19.2 percent market share even though it experienced a year-on-year decline of 14.2 percent. Apple stood second with 11.5 percent market share after the sales decline by 6.6 percent. “Apple’s sales fell by 8.5 percent in the U.S. and by 31 percent in China, two of its biggest markets.” – read the report from Gartner.

“The decision to withdraw the Galaxy Note 7 was correct, but the damage to Samsung’s brand will make it harder for the company to increase its smartphone sales in the short term,” said Mr. Gupta.

Following Apple was Huawei with 8.7 percent market share. This is essentially due to Huawei’s expansion into Europe and U.S. Next was Oppo and BBK with 6.7 percent and 5.3 percent market share respectively.

Jumping on to the smartphone operating system, Android led the command with 87.8 percent of market share running on about 327 million units. Following Android was Apple’s iOS with 11.5 percent market share running on about 43 million units. With a market share of only 0.4 percent, Windows is slowly slipping away from the charts followed by Blackberry at 0.1 percent.

“The withdrawal of Samsung’s Galaxy Note 7 may benefit sales of Apple’s iPhone 7 Plus only slightly, as Note 7 users are likely to stay with Samsung or at least with Android,” said Roberta Cozza, research director at Gartner.


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