14 DAY TRIAL // Pre-orders for Samsung's Galaxy S8 smartphone started soon after its unveil on March 29, but it seems that Samsung’s smartphone division was doing well on its own, even before the latest flagship was announced.
A recent study conducted by market research company TrendForce sheds light on the evolution of the smartphone market during the first quarter of this year. Samsung recorded strong sales with its mid-range Galaxy J series, making Samsung the only company to record production volume growth in the first quarter and grab 26.1% of market share, thus surpassing Apple.
However, sales of high-end Samsung models were lower than expected in the first quarter, as consumer confidence in the smartphone brand didn’t fully recover after the Galaxy Note 7 fiasco. The study shows that the Galaxy J recorded the highest shipments and helped Samsung surpass even Apple’s iPhones, which grabbed 20.3% of the market in Q4 2016, but dropped to 16.9% in Q1.
TrendForce estimates that the production volume of all iPhone devices in the second quarter will reach about 43 million units, down 17% compared to the previous quarter. But this shouldn’t be alarming, considering that Apple is preparing for the launch of the iPhone 8, iPhone 7s and iPhone 7s Plus in the third quarter.
Smartphone production saw a double-digit drop in Q1
Overall, smartphone production during the first three months of this year reached 307 million units, down 23% from the previous quarter. Sales drops are quite common in the Q1, following massive sales in the holiday season. Huawei is still the third smartphone maker in terms of production volumes, recording a minor growth of just 0.1% in Q1.
Market demand in the second quarter is said to remain relatively weak, as some customers are waiting for the anniversary iPhone to arrive in the third quarter of this year. The study estimates that sales will be quite modest in the second quarter, with just single-digit growth. LG and Huawei have already released their flagships for the year, while Samsung’s Galaxy S8 will hit shelves later this month and should keep the South Korean company in the lead, at least in terms of production volumes.
It will be interesting to see if Apple’s iPhone 8 will have what it takes to become the top smartphone of this year and make its way into the pockets of many customers towards the end of this year.