A series of events, including the launch of new models and an increased focus on emerging markets, pushing up the sales volume of smartphones that significantly more than 300 million pieces. The arrival on the market of new smartphones and greater attention to emerging markets has driven the delivery of these products to over 300 million units for the second consecutive quarter.
The market data collected from the preliminary analysis firm IDC shows that the third quarter of 2014 has seen a volume of shipments of 327.6 million smartphones representing an increase of 25.2% over the same quarter a year ago ( 261.7 million) and 8.7% from the previous quarter (301.3 million).
Ryan Reith, program director for Worldwide Quarterly Mobile Phone Tracker, IDC, said: ” Despite the rumors of a slowing market, shipments of smartphones continue to see record volumes. We have finally reached a point where most of the markets mature attend a single-digit growth, while emerging markets are still growing along with more than 30%. In these markets, the prices of smartphones are making it possible mobile computing where once it was expected to see continued dominance of feature phones. This is good news for the volumes, but the challenge has now moved on how to make money from these devices which are fast becoming a commodity. Outside of Apple, many people have difficulty in that. ”
The driving force behind the record smartphone sales volume is represented by the combined efforts of vendors chasing the market leaders Samsung and Apple. ” Xiaomi, Lenovo and LG Electronics have all grew faster than the market average and significantly different strategies.
This shows that there is still room to compete in this market, whether it be the low-end as did Lenovo, is at the high end as Xiaomi, or both, as shown by LG Electronics. Beyond the top five vendors, there is a multitude of other companies that are getting similar results, ” noted Ramon Llamas, research manager for the Mobile Phone division of IDC.
The Korean Samsung is the undisputed queen of the smartphone market in terms of sales volume while recording, only the top five vendors, a decline in deliveries in the comparison year on year. With the continued competitive pressure from all sides, and with a slowdown in demand for its high-end devices, volumes Samsung declined compared to the peaks earlier this year. Although Samsung has long entrusted to its high-end devices, its medium and low-end models have drawn most of the volumes in the quarter and as a result have pushed down ASPs (Average Selling Prices – average price’s sale).
Apple instead unveiled the long-awaited iPhone 6, iPhone 6 Plus and is on track to record the highest volume ever for its third quarter. Although the company has already reported sales of 10 million units during the launch weekend, what you should not miss is the long-term demand for older models of the iPhone 5S and iPhone 5C that make up most of the volumes in the quarter.
Xiaomi jumps to third place in the standings, thanks to the attention to the Chinese market and adjacent markets that carry a year on year growth in triple digits. The key to success was the launch of the smartphone E4 in August, positioned as an alternative to high-end products than the ones already known. What remains to be seen is how quickly the company will be able to move beyond its home territory to further push the volume up.
Lenovo and LG may instead be considered equal in a merit list compiled by IDC. The Chinese company has been able to count on good performance in the domestic market and in the international market with the latter, which represents 20% of total deliveries. Smartphones below $ 100, as A369i and A316 have prompted the volumes in emerging markets in the Asia / Pacific and the Middle East and Africa. In the domestic market has launched a range of 4G devices, some of them at low prices.
LG’s strategy to woo the market with low-end smartphones has allowed us to push the total volume to exceed 15 million units for the first time in the history of the company. Smartphones F-series and L-series have got a good response from the public, both in emerging markets and in developed countries. At the same time, LG has released the G3 flagship to maintain a presence in the high-end market.