-- Samsung's share of the global smartphone market rises in the
second quarter, according to IDC and Strategy Analytics
-- The two research firms estimate that Samsung sold more than
50 million smartphones in the second quarter
-- Apple's smartphone market share declines as consumers await
the next iPhone
(Rewrites throughout, adds data from IDC from 4th graph)
By Juro Osawa
HONG KONG--Samsung Electronics Co. (005930.SE) increased its
share of the global smartphone market in the second quarter,
widening its lead over Apple Inc. (AAPL) as the South Korean
technology giant shipped more than 50 million smartphones, the
largest number of units ever shipped by any vendor in a single
quarter, according to two market research firms.
The reports from research firms IDC and Strategy Analytics
showed that Samsung, the world's largest smartphone vendor, gained
a larger market share in the second quarter compared with the
previous quarter, while Apple's market share declined with some
consumers holding off iPhone purchases ahead of the expected
release of the next model later this year.
The reports indicate that Samsung's strategy to sell smartphones
in a broad price range from high-end models to more affordable
ones, combined with its aggressive marketing campaigns, has been
helping the South Korean company enhance its global market
presence. By contrast, Apple only sells iPhones, focusing on the
high-end segment.
Samsung's market share lead over Apple comes as the smartphone
market is not only growing but becoming more diverse in price and
technological features, as more consumers in emerging markets are
replacing their conventional cellphones with smartphones. According
to IDC, the global mobile handset market grew only 1% in the second
quarter from a year earlier, but smartphone shipments jumped
42.1%.
Still, the battle between Apple and Samsung is taking place in
the high-end segment, which remains the most profitable for
smartphone vendors. Samsung launched its new flagship smartphone,
the Galaxy S III, in the second quarter, while Apple is expected to
release its new iPhone later this year.
U.S.-based IDC estimated Samsung's global smartphone shipments
in the second quarter at 50.2 million units with a market share of
32.6%. In the first quarter, Samsung held a 29.1% share with 42.2
million smartphones shipped, IDC said.
Earlier this week, Apple said it sold 26 million iPhones in the
quarter ended June.
According to IDC, Apple's market share declined to 16.9% in the
quarter from 24.2% in the previous quarter.
Similarly, London-based Strategy Analytics estimated Samsung's
second-quarter smartphone shipments at 50.5 million units, with a
market share of 34.6%, topping Apple's 17.8%. That marked a
widening gap from the first quarter, when Samsung held a 30.6%
share while Apple had 24.1%.
The research reports were released shortly after Samsung
reported a record net profit for the second quarter on the strength
of its mobile business. Earlier this week, Apple reported
weaker-than-expected earnings for its fiscal third quarter that
ended June, while its iPhone sales for the quarter also missed
analysts' forecasts.
Many consumers around the world are waiting for the Cupertino,
Calif., company to release the next iPhone, which some analysts
expect will come out in September or October. People familiar with
the matter said in May that Apple is preparing a new iPhone that
has a larger screen compared with its current iPhone models, while
Apple itself hasn't confirmed its launch plans.
The reports from IDC and Strategy Analytics also highlighted
Nokia Corp.'s (NOK) struggle to establish its position in the
smartphone market. The Finnish mobile giant, which dominated the
world's handset market in the pre-smartphone era, saw its share of
the global smartphone market drop to 6.6% in the second quarter
from 8.2% in the first quarter, according to the IDC report. In the
second quarter of 2011, Nokia held a 15.4% share, IDC said.
In the overall mobile handset market including conventional
cellphones as well as smartphones, Samsung, which overtook Nokia as
the world's biggest handset vendor in the first quarter, maintained
that position in the second quarter. Samsung held a 24.1% share,
while Nokia had 20.6%, according to IDC.
Write to Juro Osawa at juro.osawa@dowjones.com
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