The South Korean electronics giant, Samsung Electronics Co. Ltd. (KRX:005930) has dominated the global Android smartphone shipments charts in the first half year of 2016. Samsung owned all the three models of top selling Android smartphone shipped in the first half of 2016. The state-of-the-art Samsung Galaxy S7 Edge emerged as the world’s top-selling Android smartphone in the first half of the year. The company shipped 13.3 million units of Samsung Galaxy S7 Edge, globally, according to the research firm, Strategy Analytics. The smartphone captured 2.3% share of all Android smartphone shipped globally over the first six months of 2016.
Samsung’s budget phone offering, Galaxy J2, secured the second position in the list of global Android smartphone shipments with estimated shipments of 13 million units. Interestingly, the third place was again captured by Samsung’s premium smartphone, Galaxy S7, accounting for 11.8 million shipments in the first half of 2016, globally.
It’s an encouraging performance by Samsung’s premium smartphones as the S7 series captured 4.34% share of all Android smartphone shipments, globally. Samsung is back with a bang in the premium smartphone segment again after the dismal performance of Galaxy S5 and Galaxy S6.
Samsung Galaxy S7 Edge Helped Drove The Growth of Android
The report also emphasised that in 1H 2016 global Android Smartphone market recorded a sizeable 5% growth in shipments, to 577.3 million units from 552.2 million units in 1H 2015.
Android’s gain is Apple’s loss, and that is proved once again in the first half of 2016. Android smartphones dominated the global smartphone shipments in H1 2016. Whereas, its rival Apple iOS catalogued a whopping 16% decline in its smartphone (iPhone) shipments from 108.7 million units in H1 2015 to 91.6 million in H1 2016.
Dismal days for iPhone
Apple, the sole ruler of ultra-premium smartphone segment, is facing a hard time in 2016, primarily because Samsung Galaxy S7 is slowly eating into its potential smartphone market since its launch in March 2016. Apparently, the situation is not going to favour Apple anytime soon as the upcoming iPhone may be missing the Wow factor, believe analysts. Thus, the shipment numbers would eventually be flat for the Apple. The Cupertino giant suffered a massive slump in its overall revenue in fiscal Q2 and Q3 2016 as nearly 70% of the company’s revenue come from on iPhone sales.
On the other hand, Samsung is all set to expand its premium smartphone market by launching its state of the art Note 7 on 19th August 2016. The smartphone appears promising and marks the debut of Iris scanner in the smartphone. Consequently, Apple iPhone sales are destined to take a hit in future as well. Samsung’s Galaxy S7 Series has paved a perfect launching platform for Galaxy Note 7.
The rising competition
The Chinese smartphone manufacturers are emerging as the potential threats for established smartphone vendors like Samsung. China’s Oppo saw its shipments skyrocket 137% in Q2 2016, compared to the same period a year ago. While, Samsung’s global smartphone shipments increased from 71.9 million units in Q2 2015 to 77.6 million units in Q2 2016, up by a mere 8 percent. Other Chinese smartphone vendors including Vivo, Xiaomi, Huawei are leaving no stone unturned to grab a sizable pie of the smartphone market, mostly at the cost of Samsung.
Despite the Sluggish smartphone shipment growth in Q2 2016 from Q1 2016, Samsung’s performance is applaudable. Though the Brexit issue and the declining currency value worldwide has hit the premium smartphone segment, especially the iPhone, the shipments of Galaxy S7 soared by riding on the back of real innovation. It also proves that the quality thrives always, and the premium users have also started seeking value for money, instead of falling for brand value alone.
The future appears glittering for Samsung as the Korean smartphone giant is banking big on innovations and futuristic technologies, likes of the bendable screen, to be implemented in its upcoming devices. However, Apple is not far behind as the Cupertino giant is reportedly working of Augmented Reality and all-screen smartphone. Samsung may have an edge over Apple with its Galaxy S7 series smartphone this year, but it would be interesting to see how will Apple bounce back with much anticipated iPhone 8 scheduled for launch on the 10th anniversary of iPhone next year.