A total of 343.3 million smartphones were shipped by vendors worldwide in the second quarter of 2016 (2Q16), according to the International Data Corporation (IDC).
IDC preliminary results from its Worldwide Quarterly mobile Phone Tracker shows that the 2Q16 shipment was relatively flat, with 0.3% increase from 2Q15 when vendors shipped 342.4 million units.
When compared to the first quarter of 2016, the market shows a sequential growth of 3.1% with 333.1 million smartphones shipments experienced worldwide in the period.
[quote font=”georgia” font_size=”22″ font_style=”italic” align=”left” arrow=”yes”]He says that “early findings show low-end Chinese OEMs that predominantly built their business domestically in China are having success penetrating non-China markets, despite low-end competition from local brands already in place.”[/quote]”We continue to see a number of changing dynamics in the smartphone market and many vendors are readjusting their business strategy and portfolio to take advantage of these market movements,” Ryan Reith, Program Vice President with IDC’s Worldwide Quarterly mobile Phone Tracker says.
“Mature markets continue the transition away from pure subsidy and over to EIP programs and Apple is beginning to put more emphasis on ‘Device as a Service’ to try to prevent lengthening replacement cycles. This is a growing theme we have heard more about from PCs to smartphones,” Reith added.
He says that “early findings show low-end Chinese OEMs that predominantly built their business domestically in China are having success penetrating non-China markets, despite low-end competition from local brands already in place.”
According to IDC, Samsung still remains the top among the top five list, having 77 million shipment, mentioning Galaxy S7 and S7 Edge to be leading in figures. Apple shipped 40.4 million units, Huawei shipped 32.1 million units, OPPO had 22.6 million shipment, and Vivo 16.4 million. Other Smartphones totaled 154.8 million shipments in the 2Q16.
“As smartphone prices continue to drop and competition escalates at the high-end, vendors will need to continue to push ‘flagship-type’ devices at affordable price points to encourage upgrading on a more frequent basis,” Anthony Scarsella, Research Manager, Mobile Phones adds.
“Chinese brands such as Huawei, OPPO, vivo, and Xiaomi have witnessed success with this strategy by shipping premium styled devices that focus on the features that matter most to consumers, such as imaging, sound quality, and design,” Scarsella says.