Thursday, 08 November 2018 09:18

Global smartphone shipments down by 7% in Q3: Canalys

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Global smartphone shipments down by 7% in Q3: Canalys Pixabay

Smartphone shipments fell by 7% in the third quarter of 2018, the fourth straight quarter of declines and the worst third quarter showing since 2015, the technology analyst firm Canalys says.

The company said China shipped 100.6 million units, a year-on-year decline of 15.2% and a sequential fall of 2.9%.

While India overtook the US to become the second largest marketm, both countries were affected by weaker seasonal performances compared to 2017.

Seven of the top 10 markets recorded year-on-year declines, caused by growing replacement cycles, worse trading conditions and competition from major Chinese vendors.

Earlier this week, an IDC report said global smartphone shipments in the third quarter showed a year-on-year decline of 6%.

Among the vendors, Samsung posted a year-on-year decline of 14%, which resulted in its market share falling from 22% in Q3 2017 to 20.4% a year later.

canalys by vendor

Huawei came in second, shipping 52 million units, with growth of 33% year-on-year. Apple followed, with 47 million units and growth of just 0.4%.

Xiaomi and OPPO were fourth and fifth, with 33 million and 31 million units shipped respectively. The Chinese vendors made up 52% of the worldwide shipments, the highest share they have recorded.

"China's market showed no improvement in terms of smartphone sell-in, and 14 of the top 20 brands in China declined in Q3," said Canalys Shanghai-based analyst Mo Jia.

"This has continued to put tremendous pressure on vendors amid rising component and labour costs in China. Chinese vendors are more focused than ever on overseas expansion in South Asia, Africa, and Central and Eastern Europe, to hedge against their business at home.

canalys region

"But the current international trade environment and geopolitical issues are not great for business either. Only a few are likely to survive the tough winter."

The company said Greater China — including Hong Kong and Taiwan — was the worst performing region in Q3, down 14.6% annually. On the other hand, Central and Eastern Europe continued to be the top performer, growing 2.2% year-on-year, followed by Africa at 0.4%.

Graphics: courtesy Canalys

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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