Samsung might have had its worst year in terms of smartphone sales, but the same appears not to have benefited Apple Inc. (NASDAQ:AAPL) in any way as initially thought. New data from research firm Gartner indicates that Chinese handset makers were the biggest beneficiary of the Korean company’s fiery troubles with the Galaxy Note 7.
Samsung Woes
Chinese handset makers led by Huawei, Oppo and BBK were the only vendors among the top five in the world to register an increase in sales as Samsung’s Note 7 gaffe exploded. The trio accounted for 21% of overall sales in the third quarter as the Korean company was forced to carry out a massive recall of the Note 7 over battery issues.
Note 7 battery problems appear to have dented the Samsung image in the industry, year over year sales having declined by 14.2%
“The decision to withdraw the Galaxy Note 7 was correct, but the damage to Samsung’s brand will make it harder for the company to increase its smartphone sales in the short term,” said Gartner research director Anshul Gupta.
Getting it right with Galaxy 8 is crucial for Samsung if it is to reinvigorate its prospects in the industry amidst stiff competition from other players aggressively gunning for market share. Just like the Korean company, Apple also appears to be feeling the effects of the threat posed by the Chinese handset makers.
Winners and Losers
A 6.6% decline in iPhone sales in the third quarter means Apple now controls 11.5% in smartphone market share, its lowest since the first quarter of 2009. Amidst the poor run, Samsung still holds the number one position in the smartphone market with a 19.2% market share.
Betting big on feature-rich devices appears to be paying off for Huawei, which is slowly closing in, on Apple for the second spot, its market share having soared to highs of 8.7% in the third quarter. The company’s expansion drive into Europe and the US is something that industry experts believe points to yet another year of promising growth. Oppo currently occupies the fourth spot with 6.7% market share.
China remains the hub center of smartphone sales worldwide, smartphone sales in the third quarter having increased by 12.4% according to the research firm.
Apple stock was up by $0.11 in Friday trading session closing the week at a high of $110.06 a share.