Apple slips to the second spot in Q3 2011 smartphone lead

Oct 31, 2011 14:28 GMT  ·  By

Samsung has set the stage for a close battle with rival Apple Inc. in the fourth quarter of 2011, reports IHS iSuppli. The Korean electronics vendor has managed to take the no. 1 spot in the global smartphone market for the first time ever.

IHS iSuppli Mobile & Wireless Communications research reveals that Q3 2011 saw Samsung ship an estimated 27.30 million smartphones, up a whopping 43.7 percent from 19.0 million in the second quarter.

Apple’s shipments, on the other hand, declined to 17.1 million iPhones, which translates into  a 15.9 percent decline (from 20.3 million) compared to the second quarter.

Samsung’s market-share thus rose to 23.2 percent (previously it was 17.5%) allowing it to propel itself to the no. 1 rank, up from no. 2 in the second quarter.

Apple’s share of the pie is now smaller, according to IHS calculations - 14.6 percent, down from 18.7 percent in the second quarter.

This, according to the market intelligence firm, caused the Cupertino giant to fall to second place, “relinquishing the No. 1 ranking it attained for the first time in the second quarter.”

Wayne Lam, senior analyst, wireless communications at IHS, explains what happened in the past few months: “Samsung has been coming on strong in the global smartphone market in 2011 because of its broad portfolio of products, especially at the high end with its new Galaxy S II line as well as its offerings in the fast-growing low-end segment of the market.”

“Meanwhile, Apple suffered a sales decline in the third quarter as buyers delayed purchasing iPhones until the new 4S model became available in the fourth quarter,” Lam said. “With the iPhone 4S now shipping in high volume, Apple is enjoying a sales spike in the fourth quarter that is expected to put it in a neck-and-neck battle for smartphone leadership with Samsung.”

But Apple is by no means in a position to pity. According to the analyst, “The third-quarter decline in iPhone shipments follows a normal pattern for Apple, wherein its results were depressed during the period immediately preceding the release of a new model.”

“This weakness is always followed by a major surge, as consumers scoop up the latest the model. Apple’s shipment pattern is strongly evident in the fourth quarter, with the company selling a phenomenal 4 million iPhone 4S smartphones during their first weekend of availability,” Lam said.