Discover Why Apple, Samsung Lose Ground To Chinese Handset Makers In Q1

By Bilal Hamdan


Strategy Analytics released the latest report on the global smartphone market recently. There were some interesting features in this report. The total market share grew by at least 33% with a total unit sale of 281 million units during the first quarter (Q1) of 2014. The same period saw an increase of 9.4% in the total mobile phone market which include smartphones and all other feature phones. A total of 408 million units of mobile phones were shipped worldwide during the first quarter of 2014.



The top manufacturers of smartphones in the world were Samsung and Apple in 2013. In 2014 also they led the list by sharing the first and second positions respectively, but the notable feature is the decrease in their respective market shares. Samsung was first with an overall market share of 31.2% which saw a slight drop of 1.2% compared to the market share of Q1 of 2013. Apple came second with a market share of 15.5% in Q1 2014. But Apple also lost 2.2% of their market share of the first quarter in 2013. The clear gainers with an increase in the market share were the Chinese handset giants Lenovo & Huawei, who captured the third and fourth positions respectively.

However Apple seems to not like the idea of competing at the low-margin, low-end of market. Apple and Samsung have done around 47% of the total global smartphone market share in Q1 of 2014. This is a slight decrease from a market share 50% just a year ago. Even though it hardly shows a collapse, it is a good indication that Huawei and Lenovo will continue to make good gains in the future.

This means that there is not really that much difference between any top of the range models, and the latest Chinese models. They all run recent versions of Android, and have similar specs, although the hardware is not often the latest, as this helps to keep the prices low. Some of the Chinese handsets are probably manufactured in the same factories as some of the big names, the majority of Apple products are made in China.

The big sellers of mobile phones in China are all Android models, and they all now use version 4. This means that they are running the same software as most branded names, such as HTC and Samsung.

They all have similar features, but the price is kept down on the Chinese models by using lower quality parts, or those which are now becoming dated. So the Samsung S5 may have the latest quad core, but the top spec Chinese model will have an older quad core. This doesn't really bother the majority of people, though, unless you want to run the latest games at the top quality settings.




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