Smartphone shipments declined 1.3% in Q2, from the same quarter a year ago: IDC

Smartphone market is a very challenging segment for companies to maintain or grow share.

    According to preliminary results from the International Data Corporation (IDC), smartphone shipments declined 1.3 percent in Q2 2017 from the same quarter a year ago it was down 0.8 percent from 1Q17.

    Smartphone shipments declined 1.3% in Q2, from the same quarter a year

    "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.

    Reith said "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 percent 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."

    However, the report said that Samsung remained the leader in the worldwide smartphone market after grabbing an impressive 23.3 percent share and 1.4 percent growth.

    The new S8 and S8+ played an important role in the quarter as the flagship brought a new design and screen aspect ratio (18:9) to the table, which could transform the industry in the months ahead.

    Consumers have responded well to the edge-to-edge display, and we expect numerous other vendors to bring out similar designs heading into next year. Outside of the S8/S8+, Samsung continues to perform well at the mid-to-low end with its "A" Series and "J" Series devices. Much like Apple, all eyes will be on the next big thing as the Note 8 will look to permanently erase all memories of the Note 7 debacle from last year.

    Apple shipped 41.0 million iPhones in the second quarter representing mild 1.5 percent year-over-year growth from the 40.4 million units shipped last year. The iPhone continues to perform well at the high end as the 7 Plus outperformed the 6S Plus from one year ago.

    The report further said that Huawei captured the third position once again thanks to strong sales in greater China as well as in many developed European markets and the Chinese giant witnessed 19.6 percent year-over-year growth and improved its market share by two full percentage points compared to the second quarter of last year.

    Meanwhile, Chinese smartphone brands like OPPO remained in the fourth position with worldwide shipments of 27.8 million and Xiaomi moved back into the top five worldwide with year-over-year growth of 58.9 percent, edging slightly ahead of vivo.

    IDC noted that Xiaomi has been very aggressive in the India market, expanding its offline presence by launching its first Mi Home store and partnering with key large format retailers to increase its retail footprint. It has also doubled the number of service centers in the past six months as it continues with its strong below-the-line marketing activities.

    "Despite some key launches in the second quarter from some well-known players, all eyes will be on the ultra-high-end flagships set to arrive this fall," said Anthony Scarsella, research manager with IDC's Worldwide Quarterly Mobile Phone Tracker.

    Anthony said that, "With devices like the iPhone 8, Pixel 2, Note 8, and V30 in the pipeline, the competition will be fierce come September. We expect all the key players to promote their latest and greatest flagships with an assortment of deals, bundles, and trade-in offers across a variety of channels in most key markets."

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