Samsung’s worst loss in smartphone sales in recent times

Things are hotting up in the smartphone space. About 21% of the smartphone sales in the third quarter of 2016 worldwide were taken over by three Chinese companies – Huawei, Oppo and BBK Communication Equipment. According to Gartner, Inc, they were the only companies who increased their sales during this quarter.

The report goes on to say that smartphone sales in China have grown by 12.4% and the most successful vendors were Oppo and BBK Communication Equipment. Oppo witnessed about 81% sales from China while BBK Communication Equipment witnessed about 89% sales. These vendors also recorded increased sales in India, Indonesia, Malaysia, Thailand and Russia.

Last year witnessed 5.4% increased sales in the third quarter compared to 2015. The total global sales came up to 373 million units. But, the overall sales of mobile phones fell by 1.3% due to less exchange of feature phones.

Samsung had a good start in the quarter but subsided due to battery problems because of which a few Samsung Galaxy Note 7 smartphones caught fire. Samsung’s smartphone’s sales in the third quarter of 2016 declined by 14.2%, which has been their worst performance ever.

The decision to withdraw Galaxy Note 7 was right, but the company will definitely find it harder to redeem their loss. It is now vital for Galaxy S8 to launch successfully for the partners and customers to regain trust in the brand.

There was also a decline in Apple iPhone sales by 6.6%. The overall sale for Apple iPhones was 11.5%, which became its lowest share since 2009. There was a decline of 8.5% in the US and 31% in China, which are Apple’s biggest markets. The iPhone 7 too, did not successfully help in replacement sales.

Huawei is in a neck-to-neck competition with Apple, with less than just three percent difference in the market share between them. Packed with good features enough to provide a high competition along with expansion of sales in Europe and U.S., Huawei holds another record of promising growth.

Android Operating System (OS) continued to have a upper hand over Apple’s iOS, sweeping up nearly 88% of the market. According to Gartner, the withdrawal of Samsung Galaxy Note 7 may benefit the sales of iPhone only slightly as Galaxy Note customers would prefer holding on to Samsung or any other Android device. Says a Gartner representative: “The Android vendors could take advantage of this situation for a short period like Huawei and other vendors. This situation can also benefit Google to penetrate into the mature market, where Pixel and Pixel XL devices have started selling.”

The battle has only just begun.