Daily Management Review

Affordable Smartphone Brands Push Up Q3 Global Shipment


The Second Highest Quarterly Total on Record Ever of Units Shipped

Affordable Smartphone Brands Push Up Q3 Global Shipment
Driven by the increase in sale of affordable handsets rather than the well known and established players in the market, the smart phone shipment increased in the second quarter of the current fiscal.

The emerging economies were the markets which saw the surge in smart phone sale, especially the affordable ones, even as high end and established brands continued to do brisk business in the developed market.

This came out after the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker brought out its statistics and analysis for the second quarter.

According to the IDC report, vendors shipped a total of 337.2 million smart-phones worldwide in the second quarter which was 11.6% more than in the same period a year ago. The numbers a year ago stood at 302.1 million units.

This is the second highest quarterly total on record ever for smart-phone shipment in terms of units. Despite an average performance in the first quarter, the smart-phone market managed to do well in the second quarter due to robust growth in many emerging markets. The overall mobile phone market however dipped by 0.4% as 464.6 million units were shipped compared to 466.3 million units shipped 2Q14.

"The overall growth of the smartphone market was not only driven by the success of premium flagship devices from Samsung, Apple, and others, but more importantly by the abundance of affordable handsets that continue to drive shipments in many key markets," said Anthony Scarsella, Research Manager with IDC's Mobile Phone team. 

As the shipment of the overall mobile phones continue to fall, experts at the IDC predict that vendors and manufacturers would want to target and push all types of smart phones into the developed as well as the develop[ping markets.

“The growth of the affordable smart phone is because they are both rich in features and low in price," added Scarsella.

The recent data and reports indicate a diversification of the smart phone market. “With majority of the attention being focused on brands like Apple and Samsung, more entrants hit this increasingly competitive market and do good business,” said Melissa Chau, Senior Research Manager with IDC's Mobile Phone team. 

While new smart phone brands keep emerging and adding themselves to the smart phone market every year, the last quarter belonged to the Chinese players who made the most progress.

The global research and statistics agency IDC now needs to track more than 200 various brands of smart phones globally to be able to come out with a definitive figure on smart phone shipment and sale trends. The IDC say that most of the new and affordable entrants have are focused either on the entry level or mid level market segment at the most and also have specific regional or a country I focus to do business.

Samsung was among the established brands in the top five that see its shipment volume decline year over year. The Galaxy S6 and S6 Edge gave mixed results as there was a dearth in supply of the newly launched models and did not meet the demands. The deep discount promotions helped brisk sale of the older Galaxy models. But that was not enough o see the company through in the second quarter.

China proved to be the strongest market for Apple smart phones which drove the company shipments to clock the biggest fiscal second quarter ever with 47.5 million units shipped. The iPhone was the dominant product of the company.

Among the affordable smart-phone brands Xiaomi did the best and achieved a 29.7% year on year growth in the units shipped. Both the premium and entry-level devices like the Mi Note and Redmi 2 handsets sold briskly.  

(Source: www.streetinsider.com)