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Apple, Samsung top Q2 smartphone shipments, but Chinese vendors growing

post #1 of 22
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Apple and Samsung continue to tower over all other smartphone manufacturers, according to a new study, but a number of Chinese vendors are making some headway as they have home-field advantage in the world's most populous nation.



Industry analysis firm Canalys released its newest figures on Monday, showing that Apple and Samsung combined account for about 45 percent of all smartphones shipped worldwide in the second quarter of this year. Out of the 238.1 million units shipped last quarter, Samsung shipped 75.6 million, while Apple shipped 31.2 million.

Apple's year-over-year shipment growth for the quarter was 20 percent, according to Canalys, while Samsung saw 55 percent growth. Still, those growth numbers pale in comparison to those of the next three largest manufacturers.

Lenovo more than doubled its smartphone shipments year-over-year, going from 4.9 million in Q2 2012 to 11.3 million and third-place among manufacturers this year. Among the top five, Lenovo's 131 percent YoY growth was topped only by Yulong, another Chinese vendor that saw its shipments jump 216 percent from 2012, moving from 3.4 million to 10.8 million.

South Korea's LG also saw considerable growth in shipments. LG moved 5.5 million units in Q2 2012, and 10.7 million in the same quarter for 2013, an increase of 93 percent.

The latest figures illustrate the challenge for Apple going forward. The highest growth in smartphone shipments is occurring in emerging markets, where consumers are less likely to be able to afford Apple's typically premium-priced devices.



China has already surpassed the United States for the world's largest smartphone market, and that nation's 88.1 million shipped units for the past quarter represent 108 percent growth from the same quarter a year ago. India, meanwhile, moved past Japan and the United Kingdom last quarter, growing 129 percent year over year to ship 9.0 million units.

Similarly, markets like Brazil and Russia are increasingly important in the smartphone industry. In addressing these markets, Apple is faced with competition not only from Samsung ? which takes a scattershot approach, releasing dozens of models in a year across multiple pricing tiers ? but also an array of Chinese vendors. Those vendors ? including Lenovo, Yulong, Huawei, ZTE, and Xiaomi ? made up 20 percent of worldwide shipments this past quarter, up from less than 15 percent for the same quarter last year.

Apple is widely believed to be preparing a lower-cost iPhone in order to address these markets. The low-cost device is said to sport a plastic chassis and perhaps a less powerful chipset, allowing Apple to save on production costs and offer the device at a price more palatable in developing markets.

Canalys' report also found that Google's Android platform now powers 80 percent of phones shipped worldwide. Apple's iOS holds 13 percent of the market.
post #2 of 22
Does this drive to a new Lingua Franca of consumer technology?

My AngloAmerican-Centric world view has always clouded my view, but I start to see the possibility of a Chinese-dominant ecosystem evolving out of the fastest growing economy.
Maybe not in the next 5 years, but 15? When will we start to see the world in a Mandarin-first modality, and all others translated from that?

Or more bluntly, when will the iPhone ship first in China.

I don't see India, which still sees an Anglo bias as its pinnacle of class privilege would align with English culture, as a driver in instantiating a new center for global consumer technology. But I could be wrong.
post #3 of 22
Quote:
Originally Posted by AppleInsider View Post

Canalys' report also found that Google's Android platform now powers 80 percent of phones shipped worldwide. Apple's iOS holds 13 percent of the market.

Wow. Must visit China to see Android phones then. All my friends have iPhones, only know a few acquaintances who have something else.
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post #4 of 22
Samsungs tizen os makes more sense here - even if they muck it up.

Also makes sense for Apple to do something different in this market.

I suppose the prize and the stakes are higher here.

Be good to know how Samsung, apple, Lenovo figure in the pc world in china and if there is any correlation in purchasing behaviour.
post #5 of 22

Lenovo is planning to launch high-end phones in the US sometime in 2014.  

 

Their most recent flagship (K900) used X86 Clover Trail+, they also have a Snapdragon 800 device coming later this year. 

post #6 of 22

Numbers don't add up to me.

 

Google announced in July they hit 1.5 million activations per day. If we're GENEROUS and assume that they sustained that level for all of Q2 2013 (instead of just hitting that number after the quarter) then that gives us 136.5 million devices (1.5 million per day x 91 days). But this includes ALL Android devices, not just smartphones. Apparently there were some 30 million Android tablets also activated in the Q2 2013. So that gives us maybe 106 million Android phones.

 

So where does this study come up with 238 million smartphones? Take out Android, Apple, Win and BB and we still have some 60-70 million phones un-accounted for. What OS are these phones running? And how come they don't have their own "position" in the chart?

 

Funny since another study last week claimed there were 176 million Android smartphones in Q2 2013. Considering Google's own claims put a MAXIMUM possible number of phones at 106 million that means they're off by 70 million.

 

Do these people even bother to double-check their figures?

 

 

Edited: Wow, don't know how I missed that last comment. 80% of all phones are Android? 80% of 238 million is 190 million, a FAR CRY from the 106 million according to Google's activations claims.

 

Or perhaps Canalys is able to figure out how many Android phones were sold that don't even have access to Google Play. That's quite the feat, if in fact true. And if it's true then that means almost half of Android devices sold are so cheap they don't even use Google's services.


Edited by EricTheHalfBee - 8/6/13 at 10:46am

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post #7 of 22
Quote:
Originally Posted by EricTheHalfBee View Post

Numbers don't add up to me.

 

Google announced in July they hit 1.5 million activations per day. If we're GENEROUS and assume that they sustained that level for all of Q2 2013 (instead of just hitting that number after the quarter) then that gives us 136.5 million devices (1.5 million per day x 91 days). But this includea ALL Android devices, not just smartphones. Apparently there were some 30 million Android tablets also activated in the Q2 2013. So that gives us maybe 106 million Android phones.

 

So where does this study come up with 238 million smartphones? Take out Android, Apple, Win and BB and we still have some 60-70 million phones un-accounted for. What OS are these phones running? And how come they don;t have their own "position" in the chart?

 

Funny since another study last week claimed there were 176 million Android smartphones in Q2 2013. Considering Google's own claims put a MAXIMUM possible number of phones at 106 million that means they're off by 70 million.

 

Do these people even bother to double-check their figures?

 

Google only count devices with Google services

post #8 of 22
Yulong, really?
post #9 of 22
What are these 69 million "others"? Sounds like it's a really popular device. Others are normally around 1% or so - I mean it's "others" we're talking about.

Anyone any clue?
post #10 of 22
Quote:
Originally Posted by Soloman View Post

Yulong, really?

That's what she said ...

post #11 of 22
Quote:
Originally Posted by TheUnfetteredMind View Post

That's what she said ...

http://gigaom.com/2012/08/28/the-phone-maker-thats-killing-apple-in-china-arrives-in-the-us/

 

"The phone runs $149 [without contract], and plans begin at $40 a month. MetroPCS, for a limited time, also is offering a $50 rebate on the second of any two 4G smartphones you purchase. (So if you buy two Quattros, the second would cost $99 [without contract].)"   1oyvey.gif

 

Under the brand name of "CoolPad" in the US.

http://coolpadamericas.com/products/


Edited by snova - 8/6/13 at 1:12pm
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post #12 of 22
Quote:
Originally Posted by snova View Post

http://gigaom.com/2012/08/28/the-phone-maker-thats-killing-apple-in-china-arrives-in-the-us/

 

"The phone runs $149 [without contract], and plans begin at $40 a month. MetroPCS, for a limited time, also is offering a $50 rebate on the second of any two 4G smartphones you purchase. (So if you buy two Quattros, the second would cost $99 [without contract].)"   1oyvey.gif

 

Under the brand name of "CoolPad" in the US.

http://coolpadamericas.com/products/

Good god that looks terrible and running an old Android OS. Who would buy these anyways? Maybe parents trying to get their kids a cheap phone?

post #13 of 22
Quote:
Originally Posted by 3Eleven View Post

Good god that looks terrible and running an old Android OS. Who would buy these anyways? Maybe parents trying to get their kids a cheap phone?

Depends on the market. In Europe or US, perhaps.  

 

However, for the China market we have to keep in mind that there is large gap between the majority of the population (in lower class) and the upper class. Upper class can buy iPhone without much trouble. However, the factory worker in China makes $200/month working 6-7 days/week.  In order for them to be able to buy an iPhone or Galaxy S w/o contract we are looking at 3+ months of work.  Not including other expenses like food, shelter, etc.

 

 Even at $150 for this "cheap phone", we are talking almost an entire's month's wage. So while I am sure most people would love to be able to buy a Galaxy S 4 or iPhone, it simply would take a great deal of conviction to hold out for one of those higher end phones. 

 

Maybe we are misinterpreting the meaning of "Yulong".. maybe its "Yulong for iPhone, but you only afford *this*".   So hope this answers "who would buy this?".  Its nothing against Apple personally, its just reality of survival. 

 

The sad part to me is the poor end up buying products produced by the poor. These product have very little margin. As a result, increasing wages to those who make these cheap devices becomes very challenging.  Its a cyclical pattern.   One we should be all familiar with if you are aware of what happens to communities when Walmart moves in or Amazon undercuts local retail by selling at a loss.

 

 What's Walmart's motto again? 

"Save Money, Live Better". yeah.. ok.  In my book the way it works is "Earn More, Spend More, Everyone Lives Better". Can't save what you don't have and what you can't make because people wont spend beyond the raw material cost. Of course labor costs will get squeezed!!! there is nothing left because there is no margin for labor in what is bought.      All this is doing is eroding the middle class in the US and Europe making us look more and more like China. Even the Chinese shop at Walmart.  As less and less people hold out for quality high market product, less and less will be able to afford quality product in the future.  So maybe in a few decades it is us who are going to buying these $150 phones along with the Chinese because it is us who can no longer afford iPhones. This may sounds like crazy talk to some, but many just need to extrapolate by recall what the quality of life was like in the US a few decades ago. Good paying jobs for most with most families able to have one parent stay home with the kids.  "Save Money, Live Better.... Suckers." sigh.

but, I digress.


Edited by snova - 8/6/13 at 4:00pm
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post #14 of 22
Apple, Samsung top Q2 smartphone shipments ....

Hmmm.... off-topic but can someone tell me how the heck Samsung got in smartphone business in first place?!!! I mean, they knew shit about smartphones before .... LOL

Yeah, I know. I know. 1wink.gif

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....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

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post #15 of 22
Mandarin will not be the lingua franca anytime soon, just like Japanese didn't 15 years following 1980-something...that is, unless I missed some "news" headline on CCTV. I live in south China and I hobnob with the wealthy (who typically sport BOTH an iPhone and Galaxy S4 along with the quality consumer goods they obtain outside the mainland)...I don't keep my iPhone active (3Gs because I am 99% centered around one of the various generations of iPad which I adore) because I don't give a damn about calling people or using the eye straining screen of a smartphone for entertainment or productivity. I have an el cheapo phone for calls of which I just buy more minutes via ChinaMobile cards from 7-11. If my iPhone could be used without a contract, I would definitely use it through phone card replenishments.
Believe me when I say this, people in China covet the Apple brand (and I can vouch for the good of China, which is a rarity for me, or for the mainland, most of the time...I enjoy my Apple products no matter where I am or hour of the day, the Chinese, by scale of numbers, won't flash mob my ass for the devices as people would in my beloved Chicago) What Apple has to do, no matter where or what, is bring those IPhones to the masses as they did with the iPod shuffle/nano. Open the world, the floodgates, to its products because emerging economies aren't saturated like their mature counterparts.
Two more things to cap of my monotribe, go to the computer districts to see all the cheap knock-off products China has to offer its own people...this country is FLOODED by subpar quality EVERYTHING...it is a sad commentary that the very people who do make the high quality stuff for foreign markets couldn't realistically obtain the same product themselves. Instead they get the low quality, potentially dangerous options by the dragonboat load. Oh, the other thing...Apple, release the iPad Pro please...USB, practical file management without third-party software, a bitchin' CPU for audio and visual production (you know, for the polar opposite of the spectrum who could afford it) bye bye
post #16 of 22
Yet again we have this disconnect between IT Analysts fantasy shipment numbers and actual "real" web usage.

Samsung claims to ship more than twice as many smartphones and rapidly growing shipments of tablets, yet according to Statcounter's Mobile Vendor data

* Worldwide Samsung and Apple are neck and neck each with around 27% market share of internet usage

* In North America Apple have over 50% and Samsung less than 20%

* In Europe Apple's share is 38.7%, while Samsung's is just 27.7%

* In China in recent months Apple have INCREASED their share to 18.5% while Samsung's share has DROPPED to 15%
post #17 of 22
Quote:
Originally Posted by Glasses Man View Post

.this country is FLOODED by subpar quality EVERYTHING...it is a sad commentary that the very people who do make the high quality stuff for foreign markets couldn't realistically obtain the same product themselves. Instead they get the low quality, potentially dangerous options by the dragonboat load. 

Glasses Man,

  I know many Chinese men hold out for foreign branded cars like Buick, German cars, instead of Chinese brand; Even though they cost 2x-5x as much as local Chinese brand.   I have heard that this is because there are more men than women due to China's child restriction policy and thus many men who seek marriage  hold off and buy quality brand car because women and their families will not allow them to marry men, if they have no car or even a Chinese branded car. Is this true? Is there a simliar effect with a man who buys an iPhone vs a cheap China branded smart phone? Or is this just for cars? I know this may sound silly and shallow to American and Europeans but I have heard this several times so I think there is some truth to this.

 

When I travel to China on business I always am surrounded by relative wealthy Chinese citizens.  They all carry iPhones and drive relatively expensive non Chinese branded cars. I am sure is not a good representation of the majority of the population of China.  Could you comment?  Very curious.

 

also, I have heard that after you get married many men then seek out Dual Sim phones. One SIM for wife, one SIM for "special friend".  Again, I know this seems shallow and silly but I have heard this several times also.   Maybe Apple should sell dual SIM versions of the iPhone to increase sales. ;-)  There seem to be lots of cultural difference between China and US/Europe for which goes far beyond just the price of one product vs another. 


Edited by snova - 8/6/13 at 5:35pm
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post #18 of 22
Quote:
Originally Posted by EricTheHalfBee View Post

"Numbers don't add up to me.

 

Do these people even bother to double-check their figures?

 

 

........Wow ... 80% of all phones are Android? 80% of 238 million is 190 million, a FAR CRY from the 106 million according to Google's activations claims."

 

Note From Secular Investor

 

Good point. Where are all those 238m Android's? They don't show up on the internet? According to Statcounter Worldwide OS usage:

 

   * Android ONLY 38.3%

 

   * iOS 24.8%

 

   * Series 40 14.4% (who are they?)

 

   * Symbian 6.39%

 

 

 

post #19 of 22
Hello snova, thanks for the civil reply (I say this because I am use to the viciousness of forums such as Synthtopia's)...
Mainland China is a country of many colors: the one child policy is followed by the less economically mobile and on the flipside the well-to-do typically have two kids maybe because they afford the penalty I guess, there are A LOT of single Chinese women because (from their experience) the men are playboys and place one-sided domestic expectations on their female counterparts...as for consumer goods and the acquisition of such: I think it really does boil down to those who have the economic advantage having a) traveled abroad and as a consequence been exposed to a more internationally common taste and behavior model; cross compare Mainland to Hong Kong/Macao b) it's crazy, but I would dare to say that the majority of ALL domestic Chinese goods (food, technology, transportation options, housing) is embarrassingly substandard and of concerning health/safety c) you may know this already, those Chinese who reflect the rising economic strata are establishing overseas bases, moving personal wealth out, and consuming goods sold in these places because of those standards of transparency, accountability
How does response tie into the topic here? I will say that tons of people here get the free apps (regardless of competing OS) over the little who DO pay for anything, everywhere I go I see those with APPLE iPads, MacBook Airs/Pro, iPhones...they are enjoying them and being productive on them in the places where they will be seen and can that they can afford; McCafe, Starbucks, Costa, any modern Mall, education training schools, on the high speed rail...oh, getting back to the apps...I heard that there are many app developers in China...you should see the lack of quality, and logic, in these apps...I got a few for my daughter, have seen my students play them, and my wife use them...talk about crap: buggy, illogical HUI and haptics, and many of them have some unsettling, underlying party propaganda that its users are numb to after many years of institutionalized "soft power"...yeah, there is the foreigner (because you know, it's the Chinese and everyone else who isn't Han) tax, hence the 2-5x price premium...some people will cry about Eurocentric this and that and the American hegemony-those same people are motivated by the Hollywood spokes people, the universities of thought, and some kinda guilt...any level headed person will strive for, obtain, and enjoy products, entertainment, food, and cultural treasure from Japan, Germany, Korea, America...no matter where
post #20 of 22
By the way, I writing from Hong Kong right now...it's where I go to decompress, enjoy quality foodstuffs, unobstructed Internet (I don't give a damn if the United States or anyone for that matter spys on me, just let me see WHAT I want to see because those who deny people something are themselves insecure, hide something, and are afraid of being challenged on their word and actions)...oh, and here, I don't get stared at, have to maneuver around spit puddles, uncovered coughs, nose picking fingers and feces covered hands due to lack of using soap let alone washing hands, have to deal with crap customer service or lack thereof...on and on and on and on and on
post #21 of 22
Oh, here is a joke I made and that I want the appleinsider folks to be the first to see: I heard the Chinese are sending "Sinonuats" to space (jeez, talk about ethnocentric)...it will be a major feat of engineering and testament to Chinese cultural superiority if they can overcome the problem of spitting and nose picking with a space helmet on, and, can they conquer this obstacle to Chinese Characteristics without the help of technology transfer/joint venture with foreign companies...it might take another 5000 years of Chinese culture to solve this quandary
post #22 of 22
Quote:
Originally Posted by Glasses Man View Post

By the way, I writing from Hong Kong right now...it's where I go to decompress, enjoy quality foodstuffs, unobstructed Internet (I don't give a damn if the United States or anyone for that matter spys on me, just let me see WHAT I want to see because those who deny people something are themselves insecure, hide something, and are afraid of being challenged on their word and actions)...oh, and here, I don't get stared at, have to maneuver around spit puddles, uncovered coughs, nose picking fingers and feces covered hands due to lack of using soap let alone washing hands, have to deal with crap customer service or lack thereof...on and on and on and on and on

Sorry to hear about issues at home. I do see what appears to be things getting better from the outside looking in . However, I am sure not fast enough for many.  I am confident eventually there has to be a great change due as China citizens get more exposed to how things can be and the great gap that exists.  I just hope that not many lives are lost in this transition. 

Best wishes to you and your loved ones when this time comes.

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