Samsung Electronics' global smartphone market share is forecast to fall to the 10% level in the third quarter of this year.
According to TrendForce, a global market research company, on August 30, Samsung Electronics' smartphone production volume in the third quarter was projected to reach 70 million units, taking up 19% of the global market. Its global market share has been steadily declining from 21.4% in the first quarter to 21.1% in the second quarter and 19% in the third quarter.
In particular, TrendForce pointed that intensifying competition with Chinese smartphone makers, including Huawei and Xiaomi, has caused a plunge in Samsung’s share in the Chinese smartphone market. According to market researcher Strategy Analytics, Samsung's share in the Chinese market, which stood at 19.7% in 2013, slid to 0.8% in the second quarter of this year.
In the meantime, Chinese companies are expected to continue their upturn in the third quarter. Huawei, which rose to second place for the first time by beating Apple, is expected to remain second by recording a 12.5% market share in the third quarter. "Huawei hit a snag in North America but successfully launched the Honor model in the UK and Indian markets," TrendForce said. "In the third quarter, Huawei’s production will grow 14%."
Huawei said that the company would reach the top of the global smartphone market by overtaking Samsung Electronics by the end of next year. The gap between the two companies has been narrowing from 9.1% points in the first quarter to 6.5% points in the third quarter.
Also of note is Xiaomi's good fight. Xiaomi is expected to ramp up production 17% in the third quarter from the previous quarter after producing 31.5 million units, the highest-ever volume, in the second quarter. As a result, the company took fourth place with a market share of 9.9%.
Apple is scheduled to announce three new iPhone models in September and is expected to remain in third place (11.5%) in the third quarter as new products have not generated new model effects. However, there is concern that the US-China trade war will have a negative impact on sales of new iPhone models in China.