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01 Feb 2017

Apple Tops Samsung in the Fourth Quarter to Close Out a Roller Coaster Year for the Smartphone Market, According to IDC

FRAMINGHAM, Mass. February 1, 2017 – The holiday quarter of 2016 capped off another positive year of smartphone growth despite concerns about the overall market slowing. According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone vendors shipped a total of 428.5 million units during the fourth quarter of 2016 (4Q16), resulting in 6.9% growth when compared to the 400.7 million units shipped in the final quarter of 2015. For the full year, the worldwide smartphone market saw a total of 1.47 billion units shipped, marking the highest year of shipments on record, yet up only 2.3% from the 1.44 billion units shipped in 2015. Large markets like China, the United States, and Brazil all ended the year on a strong note helping to keep worldwide volumes in positive territory.

"There's no question that 2016 marked a memorable year for the smartphone industry in many ways," said Ryan Reith, program vice president with IDC's Worldwide Quarterly Mobile Device Trackers. "This was a year that brought us the first down year for iPhone, yet Apple closed out the holiday quarter by surpassing Samsung for the top spot in the smartphone industry. We also witnessed year-over-year declines in some emerging regions like the Middle East and Latin America where high growth was expected. To round it all off, we now have a three horse race at the top of the market as Huawei cracked the double-digit share mark for the first time ever."

Despite the changes that 2016 brought upon the market, including annual growth dropping from 10.4% in 2015 to just 2.3% in 2016, IDC expects a few turnarounds in 2017. First, IDC is forecasting a rebound in iPhone shipments with the yet to be announced tenth anniversary iPhone. Second, the Middle East and Africa (MEA) and Latin America regions are expected to return to growth in 2017. And, as a result of the aforementioned as well as several other driving factors, growth in 2017 should improve slightly from 2016's results.

"As the two leading players continue to battle for the top spot, several Chinese vendors have solidified their position as valid contenders," said Anthony Scarsella, research manager with IDC's Worldwide Quarterly Mobile Phone Tracker. "The top three Chinese vendors (Huawei, OPPO, and vivo) are persistently applying pressure on Samsung within China thanks to a vast portfolio of affordable, well-built devices. Not only is this pressure coming at the low-end, but high-end devices like the P9, Mate 8, R9s, and XPlay6 haven proven viable options for consumers looking to upgrade or save money without sacrificing quality. However, it is worth noting that despite the success of these brands within China, they will need to find growth beyond their home turf to eventually knock off either Samsung or Apple at the top."

Smartphone Vendor Highlights:

Apple reclaimed the top spot thanks largely to the success of the new iPhone 7 and 7 Plus. Despite a strong fourth quarter, 2016 marked the first full year of declining shipments for the iPhone with a 7% year-over-year drop. Apple shipped a record 78.3 million units in the fourth quarter, up 4.7% from the same quarter one year ago. Although the iPhone 7 did not feature a drastically different industrial design from its predecessor, it did bring yet another significantly improved processor, more robust camera, water resistance, and new color/finish options. Much like Samsung, all eyes will be on Apple's next flagship, and all signs point to something very special for the tenth anniversary of this iconic product.

Samsung dropped to second in the worldwide smartphone market with shipments declining 5.2% compared to last year. The Korean giant shipped 77.5 million units in 4Q16, down from the 81.7 million units shipped last holiday quarter. On the year, Samsung shipped 311.4 million smartphones worldwide, which was down 3% from the 320.9 million shipments in 2015. Despite the Note 7 debacle and growing pressure from Chinese vendors, Samsung still managed to find success with its S7 and popular J-series of devices in numerous markets. The challenging holiday quarter, however, did bring its worldwide market share below 20% for the first time in over four years, leaving no better time for the pending arrival of its next flagship product, the Galaxy S8.

Huawei retained the number three position while gaining worldwide market share in 4Q16. The quarter marked the first time the Chinese giant captured double-digit share with 10.6% of the total shipment volume. Huawei shipped 45.4 million units in the quarter, up 38.6% from the 32.7 million shipped in the fourth quarter of 2015. For the year, Huawei shipped 139.3 million units, up 30.2% from the 107 million units shipped in 2015. The P series and Honor sub-brand drove essential volume in China as well as other countries in Asia and beyond. With proven success in China and many European countries, Huawei now has its sights set on the U.S. Whether or not the U.S. market becomes a serious playing field for Huawei is yet to be determined, but the recent release of the Mate 9 in the U.S. has surely caught the attention of both Apple and Samsung at the high end, while Honor brand devices will continue to drive the mid-tier.

OPPO continued its push to reach the top of the market with its fourth straight quarter of greater than 100% year-over-year growth. OPPO shipped 31.2 million smartphones in the holiday quarter, which was up 117% from the 14.4 million smartphones shipped in 4Q15. The focus for OPPO over the past year has been international expansion outside of China and so far it has been successful at this. Beyond China, Southeast Asia and India have been the focal points for OPPO's growth in 2016 supported by intense marketing campaigns and new product launches. The company also began ramping up its presence in the Middle East and if momentum can pick up, a strong 2017 could be ahead.

vivo remained the number five vendor with 24.7 million smartphones shipped in the holiday quarter, which was up from the 12.1 million shipped last holiday season. Over the year, vivo shipped a total of 77.3 million smartphones, up 103% from the 38 million last year. The majority of the shipments continue to be in China, however, and much like OPPO, vivo has been extremely aggressive with its marketing in a number of countries in Asia as it looks to extend its global reach.

Top Five Smartphone Vendors, Worldwide Shipments, Market Share, and Year-Over-Year Growth, Q4 2016 Preliminary Data (Units in Millions)

Vendor

4Q16 Shipment Volume

4Q16 Market Share

4Q15 Shipment Volume

4Q15 Market Share

Year-Over-Year Change

1. Apple

78.3

18.3%

74.8

18.7%

4.7%

2. Samsung

77.5

18.1%

81.7

20.4%

-5.2%

3. Huawei

45.4

10.6%

32.7

8.2%

38.6%

4. OPPO

31.2

7.3%

14.4

3.6%

116.6%

5. vivo

24.7

5.8%

12.1

3.0%

104.7%

Others

171.4

40.0%

185.0

46.2%

-7.3%

Total

428.5

100.0%

400.7

100.0%

6.9%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, Feb 1, 2017



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Top Five Smartphone Vendors, Worldwide Shipments, Market Share, and Year-Over-Year Growth, 2016 Preliminary Data (Units in Millions)

Vendor

2016 Shipment Volume

2016 Market Share

2015 Shipment Volume

2015 Market Share

Year-Over-Year Change

1. Samsung

311.4

21.2%

320.9

22.3%

-3.0%

2. Apple

215.4

14.6%

231.5

16.1%

-7.0%

3. Huawei

139.3

9.5%

107.0

7.4%

30.2%

4. OPPO

99.4

6.8%

42.7

3.0%

132.9%

5. vivo

77.3

5.3%

38.0

2.6%

103.2%

Others

627.8

42.7%

697.1

48.5%

-9.9%

Total

1470.6

100.0%

1437.2

100.0%

2.3%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, Feb 1, 2017

Notes:

  • Data is preliminary and subject to change.
  • Vendor shipments are branded device shipments and exclude OEM sales for all vendors.
  • The "Vendor" represents the current parent company (or holding company) for all brands owned and operated as subsidiary.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of IDG, the world's leading technology media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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