The worldwide smartphone market dropped for the fourth
consecutive y-o-y quarter in Q3, IDC reports.

Shipments of smartphones were down 6% year-on-year to
355.2m, the fourth such quarterly decline, and IDC said that while it believes
growth will return in 2019 there are questions about the market’s future.

The analyst company said that not only has the market has
declined for four straight quarters, but that market share leader Samsung saw
13.4% y-o-y decline in the quarter, and China, which accounts for one third of
global market, was down for the sixth consecutive quarter.

Samsung had a challenging quarter with shipments down 13.4%
to 72.2 million units shipped, IDC said. The market share leader continues to
feel pressure from all directions, especially with Huawei inching closer to the
top after its second consecutive quarter as the number two vendor. In addition,
growing markets like India and Indonesia, where Samsung has held leading
positions for many years, are being changed by the rapid growth of Chinese
brands like Xiaomi, OPPO, and vivo.

Meanwhile, China’s domestic market, which represents roughly
one third of all smartphones consumed, has been in decline since the second
quarter of 2017, and 3Q18 was the sixth consecutive quarter where the market
sees contraction. China was down 11% in the first half of 2018 (1H18), and the
challenges continued into 3Q18. Overall IDC expects this decline to decelerate
with the market returning to flat growth in 2019.

“China’s domestic market continues to be challenged as
overall consumer spending around smartphones has been down,” said Ryan
Reith, program vice president with IDC’s Worldwide Mobile Device Trackers.
“High penetration levels, mixed with some challenging economic times, has
slowed the world’s largest smartphone market. Despite this, we believe this
market will begin to recover in 2019 and beyond, driven in the short term by a
large, built up refresh cycle across all segments, and in the outer years of
the forecast supported by 5G migration.”

“The race at the top of the market continues to be a heated
one as Huawei once again slipped past Apple to the second position,” said
Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone
Tracker. “Although Huawei may have beat out Apple in Q3, the holiday
quarter could have Apple as the market leader thanks to the launch of three new
bezel-less devices. No matter who leads in the overall market the holiday
quarter should be an exciting one with a wide selection of new flagship devices
available. With the new iPhones, Mate 20, Pixel 3, V40, Note 9, and OnePlus 6T,
we can expect consumers will have a plethora of options when upgrade time
approaches. The vast selection of high-priced handsets should move ASPs in a
positive direction come next quarter.”





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