Currently, Apple and Samsung are seen as the world's largest smartphone manufacturers. Earlier, the mobile phone market was dominated by companies such as Nokia and Motorola, which Apple captured when it launched the iPhone in 2007. This product became very popular among users, with a large and multi-touch user interface, so Apple continued to dominate the smartphone market over the years.
However, Samsung's Samsung Galaxy series of mobile phones launched in 2013 brought it more fierce competition. Samsung Galaxy surpassed the iPhone to become the world's most popular smartphone brand, thanks to Samsung's massive advertising and unique Android features. It can be said that there is no end to the inner roll, and how does Apple Samsung compete for supremacy?
First, the state of the smartphone market
Over the past decade, smartphones have become an intrinsic element of daily life in developed societies. With well-established accessories, easy-to-install applications connected to the internet, they have practically become upgraded multifunctional devices that help process storage and disseminate various types of information, regardless of location and time.
Compared to non-smartphones, the growing capacity made it the world's number one product in sales in 2013. According to IDC Global Research, 72% of adults in the United States, 67% of adults in Canada, and 77% of adults in Australia own these smartphone products, and the world's leading suppliers are Samsung and Apple.
In addition to the basic features that most phones have, smartphones are equipped with a range of other systems and sensors, including multi-axis accelerometers and gyroscopes, magnetometers, cameras, GNSS receivers, light intensity sensors and fingerprint readers or, in some cases, iris scanners. The use of these elements, combined with the ingenuity of mobile app developers, has led to thousands of free or paid applications for users.
Since the current leading operating system is Android (with 85% market share), most applications and devices are developed and designed for this platform, and smartphones can be used as general-purpose devices to replace many other specialized devices.
Technavio analyzes that the global smartphone market size will grow steadily at a compound annual growth rate of 6% in 2021. The world's leading smartphone companies have been engaged in continuous fierce competition to launch advanced smartphones. Fierce competition coupled with the growing number of local smartphone companies has made global smartphones one of the most volatile industries ever.
In addition, accompanied by increased digital literacy. and trends such as increasing consumer purchasing power. Especially in emerging economies including India and China, it will further drive the market demand for smartphones. Moreover, the emergence of cheap or cost-effective smartphones and the booming global 5G coverage will further boost the growth of the market over the next five years.
By region, Asia Pacific currently holds the world's largest smartphone market share. The survey shows that the growing consumer interest in the use of new technologies in emerging economies, especially China, Japan, South Korea, India and Indonesia, will further drive the growth of smartphone market demand in these regions.
According to IDC statistics, Samsung, which ranked first in the world's smartphone shipments in 2018, saw a year-on-year decline in smartphone shipments of 8%, accounting for 20.8% of global smartphone shipments. Apple ranked second, with smartphone shipments down 3.2% year-on-year, accounting for 14.9% of global smartphone shipments. Huawei's smartphone shipments ranked third in the world in 2018, up 33.6% year-on-year, accounting for 14.7% of global smartphone shipments.
According to the 2019 Global Smartphone Market Report by international market research firm Canalys, overall smartphone shipments fell 5% in the first quarter of 2019, the sixth consecutive quarter of decline. Samsung's revenue phase grew as the Galaxy S10 flagship smartphone outperformed the Galaxy S9 at launch. Apple's iPhone shipments fell year-over-year for the second consecutive quarter. Xiaomi's smartphone shipments are declining year by year as it faces fierce competition in the Chinese market.
In the second quarter of 2019, Samsung grew 7.1% year-on-year, accounting for more than 20% of the global smartphone market share. Huawei grew 4.6% year-on-year, but the U.S. trade ban will give it a boost, especially in overseas markets. Apple's iPhone shipments fell 11% year-over-year, while iPhone revenue fell 12% year-over-year. In the third quarter of 2019, Samsung, Huawei and Apple accounted for nearly half of the smartphone market.
In the fourth quarter of 2019, global smartphone shipments increased by 1%, and the market sales reached 369 million units. Apple led the market, taking advantage of strong demand for the iPhone 11 model, with sales up 9% to 78 million units. Samsung shipped 71 million units, up 1% to maintain momentum. Huawei came in third, but slipped 7 percent from the list of U.S. entities as its overseas operations offset growth in China.
In summary, the increasingly fierce competition in the smartphone market at that time also led to the gradual consolidation of the industry. The top five brands accounted for 66% of the market share in 2019, compared to 65% and 62% in 2018 and 2017, respectively. The top three Samsung, Huawei and Apple account for nearly half of the smartphone market, leaving the rest of the market to hundreds of other brands to compete fiercely.
After all, Samsung lost the Chinese market and continues to occupy more than a fifth of the world's smartphone market, due to strong sales of the Note10 and Galaxy A series. The iPhone 11 series has been well received by consumers in various regions. The dual camera, as well as the lower price of the iPhone 11 than the XR in the same period last year, helped drive sales.
Samsung and Apple had a tough year in 2018 as competitors came from more advanced phones from Chinese brands. China's smartphone brands account for a relatively high market share in smartphone shipments, and some smartphone brands have improved their scientific research and innovation capabilities, which has made the company achieve great success and strengthened China's market leadership to a certain extent.
Second, the state of Apple's smartphone market
Market development means selling to more customers in a new market or region. Apple's market continues to grow globally. It has grown into a global brand that is ubiquitous in all markets from the Americas to Europe and Asia Pacific. In addition to its own retail stores and through other retailers, it also sells online.
Compared to the fourth quarter of 2017, Apple's iPhone shipments fell 7%, which was lower than Apple's own expectations, but in the fourth quarter of 2018, Apple still occupied the first position. With more than 22 million units shipped, the iPhone XR is the highest-selling iPhone, followed by iPhone XSMax and iPhone XS, with shipments of more than 14 million and 9 million units, respectively, and Apple ranks second in annual results.
In the fourth quarter of 2019, Apple occupied the first place in the global smartphone market with a market share of 19%, and Apple's iPhone sales were 70.7 million units, up 7% from 65.9 million units in the fourth quarter of 2018. This is Apple's best growth performance since 2015.
Apple's share of the global smartphone market has risen from 18% to 19%, and Apple's market share in 2019 has decreased slightly compared to 2018, from 14.4% to 14%. Huawei's market share grew to 17 percent, dropping the iPhone maker to third place. Samsung remains at the top of the list with modest growth of 20.9%.
Apple's leading position in this area is due to the strong demand for the iPhone 11 series, and the sale of the iPhone 11 has helped Apple increase its popularity with its very competitive price. While Apple's high-end devices are still among the most expensive on the market, the promise of powerful hardware and a lower-priced current generation once again makes Apple an attractive option for buyers.
Smartphone brands changed their strategies in 2019 to gain market share. Apple, for example, launched the iPhone 11 with multiple cameras at a lower price than the previous generation, while Apple increased its focus on services.
2020 will face significant challenges as its core market continues to decline. Apple will focus on increasing revenue from its services, which currently relies on its user base. But with suppliers like Samsung and Huawei offering cheaper, more competitive alternatives, Apple needs to roll out a cheaper iPhone, or at least become more flexible in terms of channel discounts, to maintain its user base betting on the future.
Third, the situation of Samsung's smartphone market
Samsung's "dominance" in the global market is still solid, and its global brand influence is still unshakable, which is the comprehensive result of technical strength and industrial ecological construction, making Samsung still strong even though it has faced several crises. Samsung controls more than 20% of the global smartphone market. Since 2011, the South Korean conglomerate has maintained the highest market share in the global smartphone industry.
Samsung mobile phones have been sitting on the throne of the world's market share for a very long time, and although Samsung has different shares in the data reports of different research institutions, it still ranks first. The company offers a variety of smartphones to meet the needs of its diverse customer base, with Samsung's S and Note smartphones targeting the high-end segment, while its Series A is aimed at the mid-range and low-end segments.
According to IDC's global smartphone shipment report, in 2018, Samsung shipped 292.3 million mobile phones, with a market share of 20.8%, occupying the first place. For the full year of 2019, Samsung shipped a total of 295.7 million smartphones, an increase of 1.2% over 2018, and its market share was 21.6%, up from 20.8% in the same period of 2018.
Another key area that Samsung focuses on in 2019, in addition to excluding some so-called "early products", Samsung S10+5G is the world's first large-scale 5G mobile phone on sale. In the third quarter, Samsung accounted for 74% of the world's approximately 4.3 million 5G mobile phone shipments.
Next, Samsung performed well overall in 2019, but its most important battleground, the Chinese market, has long been an undisputed failure, and Samsung will have to work harder to maintain its leading position in the global market.
epilogue
Smartphone brands changed their strategies in 2019 to gain market share. Samsung, for example, which accounts for more than a fifth of the world's smartphone market, has improved its Note10 and Galaxy A series phones, launching a phone to the mid-range market. Apple's release of the iPhone 11 with multiple cameras at a lower price than the previous generation, and the lower price of the iPhone 11 than the XR at the same time last year, helped drive sales.
At the same time, Apple has increased its focus on services. Chinese OEMs carved out new markets in 2019, gaining market share by launching industry-first "5G-capability" equipment in markets that launched 5G services earlier. Smartphone company manufacturers also brought several innovations in 2019, paving the way for future mainstream technologies that allow consumers to choose from a wide range of powerful smartphones at affordable prices.
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