Tuesday, April 11, 2017

1Q 2017: Global Smartphone Market Share: Samsung 26.1%, Apple 16,9%, Huawei 11,4% says TrendForce.




Global smartphone production volume for the first quarter of 2017 totaled 307 million units, a drop of 23% from the previous quarter, according to market intelligence firm TrendForce. Smartphone brands, especially those based in China, lowered their production volume forecasts through the first quarter as demand slowed down significantly due to the conventional seasonal effect.

Major brands such as Samsung, LG and Huawei have begun to ship their flagship devices for the year, but the market demand going into the second quarter is expected to remain relatively weak as consumers are holding off their purchases in anticipation of the 10th anniversary iPhone devices that will arrive in the third quarter. 

Smartphone sales will be fairly lackluster until the second half of this year. TrendForce estimates that the global smartphone production volume for this second quarter will register a modest single-digit growth versus the preceding three-month period.

Strong sales of the Galaxy J series made Samsung the only brand posting production volume growth for the first quarter

Samsung’s sales results for its high-end smartphones fell short of expectations in the first quarter as consumers’ confidence in the brand had yet to fully recover from the recall of Galaxy Note 7. 

Nevertheless, Samsung continued to do very well in the mid-range and low-end segments of the market. 

The economically priced, high-performing Galaxy J series sustained Samsung’s shipments and contributed significantly to the expansion of the brand’s overall smartphone production volume. Samsung was the only brand that saw positive growth in production volume during the off season of the first quarter.

Samsung has also released its flagship device for the year Galaxy S8 this second quarter. However, the high-end model is expected to make limited sales contribution because the buzz surrounding the next-generation iPhone devices is dampening demand for products from non-Apple vendors. 

Samsung is expected to post flat growth for its second-quarter smartphone production volume. The S8 devices and the J series, which are contending for market shares respectively in the high-end and the mid-range to low-end segments, will keep Samsung’s shipments relatively stable in the second quarter. For the entire 2017, Samsung is estimated to increase its production volume by as much as 5% compared with the volume figure of 2016.

The total production volume of all iPhone devices for the first quarter of 2017 fell by 36% compared with the previous quarter and declined by 41% versus the same period a year ago. These results actually showed an overall improvement in iPhone sales. 

Apple this first quarter released the “PRODUCT Red” edition of iPhone 7 and 7 Plus, which can be regarded as a follow-up to last year’s “Jet Black” edition. The use of striking colors has been well received by consumers and helped Apple grab market share. The bold color scheme has also raised awareness about the upcoming release of the 10th anniversary iPhone devices.

TrendForce estimates that the total production volume of all iPhone devices for the second quarter will reach around 43 million units, a decline of 17% from the preceding quarter. Apple will likely to lower the production of existing iPhone models as the company prepares for the launch of the next-generation devices in the third quarter.

Because of the seasonal effect on demand, LG’s first-quarter smartphone production volume plummeted by almost 40% compared with the prior quarter. This was despite that the brand had rolled out the high-end device V20 in the second half of 2016 to help drive shipments during the turn of the year and beyond. Looking ahead, LG’s shipments will benefit from the impending arrival of G6. TrendForce projects that LG’s production volume will reach around 18 million units this second quarter, similar to the result for the same period last year. 

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