IDC: Q2 2017 Smartphone Volumes "Slightly" Down

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IDC reports global smartphone shipments total 341.6 million in Q2 2017-- a decline of -1.3% on a Y-o-Y basis, and by -0.8% following a higher-than-expected Q1 2017.

However, despite such a drop in shipments all leading vendors continue seeing positive shipment growth. Samsung and Apple market share remains "relatively" consistent from Q2 2016, while the other 3 vendors making the top 5 (namely Huawei, Oppo and Xiaomi) see share growth.

IDC mobile phones

"In my opinion, the biggest change in Q2 2017 is the size of the contraction among the 'Others' outside of the top 5 OEMs," the analyst says. "It's no secret that the smartphone market is a very challenging segment for companies to maintain or grow share, especially as already low average selling prices declined by another -4.3% in 2016. The smaller, more localized vendors will continue to struggle, especially as the leading volume drivers build out their portfolio into new markets and price segments."

IDC predicts the H2 2017 will see Y-o-Y growth across the two quarters, making 2017 a "rebound year." Samsung is currently riding momentum from the Galaxy S8 products, while Apple is expected to announce the next round of iPhones come September. The rest of the year should also see the launch of other high-end devices, such at the Note 7, Pixel 2 and V30, so competition will be fierce with an assortment of deals, bundles and trade-in offers across most key markets.

As mentioned earlier, Samsung remains the leader in Q2 2017, with 23.3% market share and shipment growth of 1.4% Y-o-Y. The S8 and S8+ helped the company greatly, and rivals are expected to start offering designs with similar edge-edge-display designs. The S. Korean giant also performed well in the mid-to-low tiers, with the A and J series devices.

Meanwhile Apple sees 1.5% Y-o-Y growth on iPhone shipments reaching 41m. The iPhone remains a solid performer at the high end, with the iPhone 7 and 7 Plus driving ASP growth of 2% despite foreign exchange headwinds. Of course, everyone's eyes are now on the iPhone 8 and its expected feature set, such as a larger AMOLED display, wireless charging and increased performance and durability.

In 3rd place is Huawei, with strong sales in greater China and many European markets leading to 19.6% Y-o-Y shipment growth and 9.3% Q2 2017 market share. Oppo remains in 4th place even as it improves its market share by 1.5 percentage points to 8.1%, and Xiaomi drops to 5th place with Y-o-Y growth of 58.9% Y-o-Y.

Go IDC WW Quarterly Mobile Phone Tracker August 2017