According to Strategy Analytics (SA), a market researcher on December 14, Samsung Electronics's global smartphone shipments are expected to run to 319.8 million units, accounting for 20.5% of the world total shipments of this year.
SA expected Samsung's smartphone shipments to hit 315.3 million units next year with a decreased market share of 19.2 percent. SA also said that Samsung’s shipments and market share would fall as the company would be sandwiched between Apple in the premium smartphone sector and Chinese companies in the budget smartphone sector.
Except for Samsung Electronics, the second- to fifth-ranked companies are expected to maintain or scale up their shipment levels and market shares this year. Apple which recorded a market share of 14.5% with 215.4 million units of last year is expected to dial up its market share by recording shipments of 218.1 million units (14.0%) this year and 234 million units (14.3%) next year.
It is noteworthy that Chinese smartphone companies are enjoying rapid growth. The third-ranked manufacturer, Huawei, is expected to chalk up shipments of 156 million units this year and 164.5 million next year. Huawei, which had a market share of 7% in 2015, raised its market share to 9.3% last year. Huawei’s market share is expected to reach the 10.0 percent level this year and next year. Oppo’s sales are expected to grow from 121.9 million units this year to 127.5 million units next year and Xiaomi’s sales from 9.57 million units this year to 120.1 million units next year.
Oppo and Xiaomi which accounted for 5.9% and 3.9% of the market, respectively, are expected to elevate their market shares to 7.8%, 6.1% this year and 7.8% and 7.4% next year, respectively. This is because Chinese makers is gaining ground in China and India which are the world's first and second largest smartphone markets with strong price competitiveness.
It is pointed out that as Chinese makers are making their presences felt not only in the budget smartphone market but in the premium smartphone market, Korean companies such as Samsung Electronics are urgently needed to take proper actions as soon as possible.