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Samsung's share fell from 32.3 percent in Q2 2013 to 25.2 percent in Q2 2014.

According to the latest figures from IDC, the global smartphone market grew by an incredible 23.1 percent during Q2 2014 compared to Q2 2013. During the quarter, over 295 million smartphones were sold worldwide and IDC’s forecasts show that shipments will break the 300 million mark in Q3 2014.
 
Despite the launch of the Galaxy S5 and numerous other smartphones over the past 6 months (including the 7” Galaxy W), Samsung’s shipments for Q2 2014 actually declined year-over-year (YoY) from 77.3 million units to 74.3 million units. In addition, Samsung’s share of the global smartphone market fell from 32.3 percent in Q2 2013 to 25.2 percent in Q2 2014.

 
These numbers should come as no surprise as Samsung already issued a warning for its Q2 earnings, and over 200 Samsung managers have returned bonuses to “apologize” for the company’s performance.
 
Apple’s iPhone shipments grew 12.4 percent YoY from 31.2 million to 35.1 million units. However, Apple also saw a decline in market share — although to a lesser extent than Samsung — falling YoY from 13 percent to 11.9 percent. IDC notes that Q2 is traditionally a “seasonal low” for Apple and that “consumers [are] holding their collective breath for the long-awaited bigger screens [of the iPhone 6].”

 
IDC’s Melissa Chau attributes Samsung’s troubles to Chinese manufacturers, which have in recent years stepped up their game when it comes to value-packed smartphones.
 
“[They offer] 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.”
 
IDC’s numbers do indeed show a surge in growth for Chinese OEMs. While both Huawei and Lenovo each currently have less than 7 percent of the global smartphone market, they saw YoY growth of 95.1 percent and 38.7 percent respectively.

Source: IDC





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