Smartphone Shipments Drop 2.9 Percent in 2018 First Quarter IDC Report

During the first quarter of 2018, Samsung retained the top spot in the smartphone market, followed by Apple and Chinese device maker Huawei, according to new data released on May 2 by research company IDC. But arguably the biggest story from the first quarter was the rapid rise of Chinese smartphone makers that continue to put pressure on the market leaders. While mobile device makers such as Apple and Huawei generated sizable profits and posted impressive market share numbers during the period, the global smartphone shipments declined in the first quarter. This slide show will cover of the more significant findings from IDC’s quarterly data.

The global smartphone market had a rough first quarter, data from IDC shows. Overall, smartphone shipments worldwide hit 334.3 million units during the period, a 2.9 percent decline compared to the same period in 2017. IDC attributed the decline to fewer feature phone users converting to smartphones this year compared to 2017.

Samsung was the clear leader during the first quarter of 2018. The company shipped 78.2 million units to win a 23.4 percent market share during the period. While market share was up from 23.3 percent last year, total shipments were down from the 80.1 million units it shipped in the first quarter of 2017.

In a broader analysis, IDC reported that Samsung’s performance was bolstered by the new Galaxy S9 and Galaxy S9+ handsets it released late in the quarter. Furthermore, IDC said that Samsung’s budget-friendly Galaxy A and Galaxy J smartphones helped sustain shipment volume in 9emerging markets.

Apple took the second spot during the first quarter, but it didn’t get close to Samsung. Apple’s iPhone shipments during the period topped 52.2 million units, earning the company 15.6 percent market share. During the first quarter, of 2017, Apple shipped 50.8 million units and tallied market share of 14.7 percent.

IDC’s data on the iPhone was taken from Apple’s own earnings report, which showed a slight bump in shipments. IDC said that Apple’s iPhone X had “success” in the first quarter and was complemented by “healthy sales of the iPhone 8 and iPhone 8 Plus.” IDC added that the iPhone X’s starting price of $999 pushed Apple’s iPhone division average selling price from $655 in the first quarter of 2017 to $728 in the first quarter of 2018.

Chinese smartphone maker Huawei is coming on strong. The company’s smartphone shipments jumped 13.8 percent year-over-year from 34.5 million units in the first quarter of 2017 to 39.3 million units in the first quarter of 2018. Huawei’s market share also grew from 10 percent in the first quarter of 2017 to 11.8 percent last quarter.

Huawei’s success over the period can be attributed to two factors, according to IDC. First, Huawei has done a fine job of establishing itself as one of the leaders in the Chinese market. Second, the company has invested heavily in “upscaling its brand image in international markets,” IDC reported.

Another Chinese smartphone maker, Xiaomi also saw its shipments soar. The company shipped 28 million units during the period, an 87.8 percent jump compared to the 14.8 million units Xiaomi shipped in the first quarter of 2017. The company’s global market share jumped from 4.3 percent last year to 8.4 percent in the last quarter.

But it wasn’t all good news for Chinese smartphone makers. Domestic smartphone shipments for China’s Oppo actually slowed during the first, according to IDC. The company’s first-quarter shipments totaled an estimated 23.9 million units, earning it 7.1 percent market share during the period. In the first quarter of 2017, Oppo’s smartphone shipments topped 25.8 million units and its market share stood at 7.5 percent.

All the other smartphone makers including the IDC report, including Sony, LG, and OnePlus, combined to ship 112.7 million units during the period. While that segment captured 33.7 percent market share, shipments were down a whopping 18.5 percent compared to the 138.3 million units shipped during the first quarter of 2017.