Samsung, Apple Must Be Anxious About The Growth of Huawei And Xiaomi

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Neeraj M
I am a full-time Industry Analyst, covering mobile industry, writing about the giants and their growth performances, chasing the statistics like my dreams, and digging deep into the industry till I get a gold mine. 'Earned' my Masters in BioTech quite recently and giving wings to my thoughts without drinking RedBull.

Amidst slowing down smartphone shipments worldwide, two Chinese smartphone OEMs, Huawei and Xiaomi, have managed to hold their ground by registering a jaw-dropping growth in the smartphone shipments during the second quarter of 2018. On the other hand, the scenario has been somewhat disappointing for the currently leading global smartphone manufacturer, Samsung which has registered a shocking 10.4% YoY decline in the worldwide smartphone shipments in Q2 2018.

According to the preliminary data provided by the research firm IDC (International Data Corporation), the global smartphone shipment has experienced a third-time quarterly Year-Over-Year decline. The global smartphone shipments registered a 1.8% YoY fall in Q2 2018. From a total worldwide smartphone shipment of 348.2 million in Q2 2017, the figures now hover around 342 million in aggregate.

In chronological order, Samsung, Huawei, Apple, Xiaomi and Oppo, emerge as the top five smartphone manufacturers in Q2 2018.


Worldwide Smartphone Market Q2 2018: Samsung’s Disappointment

The latest Q2 2018 report is not at all assuring for Samsung as the Korean giant records a sharp 10.4%YoY ( Year over Year) decline in the worldwide smartphone shipments. From 79.8 million units in the Q2 2017 to 71.5 million units in Q2 2018, Samsung’s worldwide smartphone shipment figure has been declining constantly. Consequently, the company also losing its grip on the market as its worldwide smartphone shipment share fell from 22.9% in Q2 2017 to 20.9% in the year-ago quarter.


The Q2 2018 reports are causing even more discomfort for Samsung as the company marked a 0% YoY change in the shipments of smartphones worldwide in Q1 2017. Despite the unpleasant statistics, Samsung remains the leading shareholder in the worldwide smartphone market.

The latest flagships from Samsung, the S9 and the S9+ have failed to live up to the company’s expected as of yet. According to a Korean news site, the bell, there were lesser shipments of S9 in Q2 2018 when compared to Q1 2018.

The Growth of Huawei And Xiaomi Really Impressive

The Chinese smartphone OEMs (Original Equipment Manufacturer) giants have shown contrasting worldwide smartphone shipment YoY growth. The latest IDC data accounts that Huawei toppled Apple to grab the second spot in the global market share for smartphones. The company marked an impressive 40.9% YoY growth in Q2 2018. From 38.5 million smartphone shipments in Q2 2017 to a massive 54.2 million shipments in Q2 2018; Huawei is currently holding 15.8% share the global smartphone market.

On the other hand, Xiaomi registered a mammoth 48.8% Year over year growth in the Q2 2018, grabbing the fourth spot in the worldwide smartphone shipment. From 21.4 million shipments in Q2 2017, the numbers rose to 39.1 million units in Q2 2018; increasing the company’s worldwide smartphone shipment share to 9.3% in Q2 2018 from 6.2% in the year-ago quarter.


The latest report on worldwide smartphone shipment Q2 2018 by IDC has once again had the smartphone rankings shaken. Ryan Reith, program vice president at IDC’s Worldwide Mobile Device Trackers says,

The continued growth of Huawei is impressive, to say the least, as is its ability to move into markets where, until recently, the brand was largely unknown.It is worth noting that Apple moved into the top position each of the last two holiday quarters following its product refresh, so it’s likely we’ll see continued movement among the top ranked companies in 2018 and beyond.At the same time, Xiaomi, OPPO, and vivo are all slowly pushing their customer base upstream at a price tier slightly lower than the top three. This is an area they should all watch closely as the builds in this segment are getting increasingly more advanced.

Samsung will surely hope to revamp the statistics in the upcoming quarters with its new flagship launches that would happen in the recent future. Also, the nascent Chinese manufacturer like Xiaomi would aim at giving a stiffer competition, if not leading, in the global smartphone markets.


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