Share

Emerging markets the 'engine' of smartphone growth

Washington - Global smartphone sales grew at a healthy pace in the third quarter, boosted by low-cost handsets in emerging markets, industry research showed on Thursday.

The research firm IDC said global smartphone shipments jumped 25.2% from a year earlier to 327.6 million in the quarter, and were up 8.7% over the second quarter.

"Despite rumours of a slowing market, smartphone shipments continue to see record-setting volumes," said IDC's Ryan Reith.

"We've finally reached a point where most developed markets are experiencing single-digit growth, while emerging markets are still growing at more than 30% collectively.

"In these markets, smartphone price points are making mobile computing possible where we once expected feature phones to remain dominant."

Profits

But for smartphone makers, Reith said it will become more challenging to make profits as prices drop.

"Outside of Apple, many are struggling to do this," he said.

A separate survey from Strategy Analytics showed global smartphone shipments grew 27% to 320 million units in the quarter.

"Smartphone growth was mixed on a regional basis during the quarter, with healthy demand in Asia and Africa counterbalanced by sluggish volumes across North America and Europe," said analyst Linda Sui.

Samsung remained the top global vendor. IDC pegged the South Korean group's market share at 23.8%, while Strategy Analytics estimated it at 24.7%. Over the past year, Samsung has lost market share, largely to Chinese manufacturers.

Apple's share also dipped as iPhone sales grew at a slower pace than that of key rivals. Its market share was estimated at around 12% by both firms. Apple sold 39 million iPhones in the July - September period, lifted by its new iPhone 6 and 6 Plus.

"Apple's iPhone growth is slowing worldwide because of its limited presence in the fast-growing entry-level segment," said Neil Mawston of Strategy Analytics.

A tough battle is being waged for the number three position in the market.

Strategy Analytics placed lesser-known Chinese group Xiaomi in third place, with its market share jumping to 5.6%, ahead of South Korea's LG (5.2%) and China's Huawei (5.1%).

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.36
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders