Samsung Electronics Co. came in first in the global smartphone market in the third quarter of 2019. Industry sources say Samsung Electronics has benefited from the successful launch of the Galaxy A series.
According to TrendForce, the total output of smartphone brands is expected to grow 9.2 percent on-quarter to 375 million units in the third quarter of this year. The top six companies, Samsung Electronics, Huawei, Apple, Oppo, Xiaomi and Vivo, dominate with 78 percent of the total market share.
TrendForce said that although the peak season is likely to continue in part in the fourth quarter, the first-quarter market demand is expected to weaken as producers are more meticulous in managing brand inventories.
And the smartphone market has entered a wait-and-see phase with the emergence of 5G products. Adding that the companies expect to adopt relatively conservative production plans in the fourth quarter. As a result, total output in the fourth quarter might reach 370 million units, down slightly from the third quarter.
Several factors that might affect annual performance of the global smartphone market.
The U.S.-China tariff dispute and the U.S. ban on Huawei have unnerved the entire smartphone market. Moreover, the enhanced completeness of smartphones makes it increasingly difficult to differentiate brands. This year, consumers have generally shown weaker demand than in the past. Experts expected total output of smartphones to fall 4-5 percent on-year to 1.4 billion units this year.
A good result for Samsung, but the global smartphone market generally decreased this quarter
Meanwhile, sales seem to have decreased compared to increased production. According to IT consultant Gartner, global smartphone sales for end users fell 0.4 percent in the third quarter of this year from a year earlier. Analysts say that consumers have shown low demand as they consider the value of costs more important.
Most smartphone users don’t want the cheapest smartphones anymore, said Ahnshul Gupta, Gartner’s chief researcher. Today, smartphone users are opting for mid- to low-priced smartphones that offer better value than premium smartphones. Adding that smartphone users are delaying their decision to purchase smartphones until 2020 while waiting for the 5G network service available in more countries.
Due to this change, Samsung Electronics, Huawei, Xiaomi, Oppo and Vivo have strengthened their low and medium-priced portfolios. Through this strategy, Huawei, Samsung Electronics, and Oppo recorded growth in third quarter of 2019. Apple, on the other hand, once again posted a double-digit on-year drop in sales.