Smartphone sales slightly in decline: new IDC report

According to a preliminary report from International Data Corporation (IDC), smartphone OEMs shipped a total of 341.6 million units worldwide in the second quarter of 2017 indicating a decline. IDC said that coming off a higher than expected first quarter, smartphone shipments declined by 1.3 per cent from the same quarter a year ago and were down 0.8 per cent from the first quarter of the year.

While the smartphone industry contracted slightly in the second quarter, IDC added that it’s worth noting the leading vendors all saw positive shipment growth. Samsung and Apple both held shares relatively constant from the second quarter a year ago, while the other three vendors rounding out the top 5 – Huawei, OPPO, and Xiaomi – all grew shares.

The one change in terms of ranking within the top 5 was Xiaomi slightly outpacing Vivo, but not by much.

“In my opinion, the biggest change in the second quarter is the size of the contraction among the ‘Others’ outside of the top 5 OEMs,” said Ryan Reith, program vice president with IDC’s Worldwide Quarterly Mobile Device Trackers. “It’s no secret that the smartphone market is a very challenging segment for companies to maintain or grow share, especially as already low average selling prices declined by another 4.3 per cent in 2016. The smaller, more localized vendors will continue to struggle, especially as the leading volume drivers build out their portfolio into new markets and price segments.”

IDC expects to see two quarters of positive year-over-year growth, leaving 2017 as a rebound year. Samsung is riding momentum from the Galaxy S8 products, with the presumed August announcement of the Note 8 right around the corner.

In parallel, anticipation continues to build for the next round of iPhones that the industry expects Apple to announce in September. Outside of these two industry leaders, the companies to watch will continue to be the next three to five OEMs and how they navigate to position themselves in growing markets.

 

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Jim Love, Chief Content Officer, IT World Canada

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