The worldwide smartphone market grew 23.1% year over year in the second quarter of 2014 (2Q14), establishing a new single quarter record of 295.3 million shipments, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker. Following a very strong first quarter, the market grew 2.6% sequentially, fueled by ongoing demand for mobile computing and an abundance of low-cost smartphones. Second quarter shipments were in line with IDC’s forecast and all expectations are that the market will continue apace in the second half of the year and surpassing 300 million units for the first time ever in a single quarter in 3Q14.
“A record second quarter proves that the smartphone market has plenty of opportunity and momentum,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker, in a statement. “Right now we have more than a dozen vendors that are capable of landing in the top 5 next quarter. A handful of these companies are currently operating in a single country, but no one should mistake that for complacency – they all recognize the opportunity that lies outside their home turf.”
Despite a challenging quarter for Samsung, the strong market demand boosted results for most smartphone vendors. Emerging markets supported by local vendors are continuing to act as the main catalyst for smartphone growth. Among the top vendors in the market, a wide range of Chinese OEMs more than outpaced the market in 2Q14
“As the death of the feature phone approaches more rapidly than before, it is the Chinese vendors that are ready to usher emerging market consumers into smartphones. The offer of smartphones at a much better value than the top global players but with a stronger build quality and larger scale than local competitors gives these vendors a precarious competitive advantage,” said Melissa Chau, Senior Research Manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, in a statement.
Smartphone Vendor Highlights:
Apple‘s second quarter is always its seasonal low of the year, but even more so this time in advance of the iPhone 6, with consumers holding their collective breath for the long-awaited bigger screens. Apple enjoyed continued success in the BRIC markets, a good sign that it is building its footprint in emerging markets. Given the pent-up demand, the third quarter could be a drought or a flood, depending on the timing of the next launch.
Collectively Samsung lost 7.1 percentage points of market share compared to a year ago, despite having one of the largest smartphone portfolios of all OEMs. To maintain its position at the top, Samsung will need to focus on building momentum in markets dominated by local brands, according to IDC.
Huawei‘s story centered on 4G LTE pick up, particularly in China, as all three national carriers subsidized 4G handsets like the P7 to encourage consumers to upgrade from 3G. Outside of China, large volumes of its lower-cost Y series fueled growth across most regions. The company continues to focus on broadening its global reach and the 2Q14 results show that the momentum is undoubtedly there.
Lenovo had a record quarter in China despite tremendous pressure from local brands. During the quarter, Lenovo saw increased success from the A788T, as well as the 3G A388T. And while its Motorola acquisition is undergoing approval, Lenovo continued to gain traction in international markets. While less than 5% of Lenovo’s shipments were registered outside of China in the second quarter of 2013, this share nearly tripled in 2Q14, with emerging markets, particularly BRIIC countries, picking up the largest volumes.
LG volumes were largely driven by its L series, helped by models like the L70, which performed well in many markets including the United States. With the G3 launched at the end of the quarter in Korea, greater volumes are expected to show up in the third quarter.
Top Five Smartphone Vendors, Shipments, and Market Share, 2014Q2 Preliminary Results (Units in Millions)
Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors. The vendor names here reflect the parent company name, where Microsoft owns Nokia. Motorola shipments will be counted under Lenovo once legal approval is obtained.
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Source: IDC Worldwide Quarterly Mobile Phone Tracker, July 28, 2014
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]
IDC, Gartner, they’re goobers in search of living, flying pterodactyls.
I’d love to believe the part about Scamsung’s sales heading south, and it’s probably true. But IDC and Gartner fit right in with the thieves on Wall St.
Phillip from Fortune wrote an article just couple of days ago on how random “research” on sales is. Every figure besides directly declared in official reports by manufactures is just made up out of thin air.
Yep. DED at AppleInsider nailed these “research” companies to the wall last week.
At some point IDC, G(F)artner etc, have to admit the obvious or they lose any remaining credibility.
IDC and Gartner are now as believable as Consumer Reports. Which means take anything they say with a big grain of salt. Most likely there wrong or have twisted the facts because they have been paid off to do so. I would love to say this is great news for Apple but they posted some very wrong reports about Apple losing sales with there Macs and the facts came out that Apple actually had a record quarter sales with there Macs. So now we can’t trust there information anymore even if it looks good for Apple.
This is why next time they will postpone their reports on PCs until after Apple will post their official figures. Before this latest embarrassment with PCs, IDC and Gartner were never sure of their phone/smartphone “researches” and thus always waited for Apple results, but were sure about about their PC “research”. But not any more.
The only reports that can be believed about Apple are only ones that come directly from Apple.
…Yeah, but wouldn’t it be fun to have a pity party for Samsung?
😥 🙀😭😫😪😩😿📉📉📉🚽
Wow, I guess Samsung must be having problems. Looks like even their check to IDC bounced.
——RM