Samsung First in a Slowing Smartphone Market

Although Samsung has been the largest manufacturer of smartphones also during the second quarter, overall shipments of mobile phones will be smaller than forecast.

As noted by TrendForce, shipments of smartphones will grow 8.2 percent in 2015, the year-over-year, a rate lower than the 11.6 percent expected. Research firm said the revision on forecasts of market growth is due to a “negative economic outlook” around the world that will lead to a drop in demand. Even worse, the growth rate is far less than the 26.5% that the smartphone market has recorded during 2014 according to Liuxers.com.

A similar slowdown is having even the tablet market, where demand has decreased considerably. The concern for sellers, at least for the moment, is that the mobile market is starting to stabilize. Last March, the research firm IDC has forecast growth of only 2.1 for tablet percentage points in 2015 with 234.5 million units, a 5.2 percent drop compared to the previous estimate. According to IDC, the so-called “2-in-1” are products that will lead to this growth.

For the second quarter of 2015, TrendForce disclosed that Samsung will go the 26.8 percent of the market against Apple’s 16.4 percent. Following Huawei and Haier with, respectively, the 7.6 percent and 5.9 percent.

TrendForce has remained particularly affected estimates on Apple, claiming that its market share was dictated by “a major accomplishment on shipping even in less favourable”. The research firm noted that sales of iPhones tend to usually slow down ahead of the launch of new models but, until now, this didn’t happen. For Apple, TrendForce provides for 15% of total shipments 2015 increased year-over-year.

In contrast, TrendForce is not as sure as if Samsung will pass later this year. Despite the Korean company has been the leading manufacturer in the second quarter, the research firm estimates show that Chinese manufacturers, including Huawei, are taking shares in so-called low end. Overall, TrendForce provides that Samsung will get results of less than 45 million units planned.

“Samsung’s ability to reverse the trend may depend on the success of its Galaxy Note 5, said TrendForce, referring to the launch of the new phablet. “If this device will be able to attract consumers through improved features and new features, Samsung may avoid having a negative growth in 2015”.

In China, however, things seem to be going pretty well for Huawei. TrendForce said that the company will be the first to reach 100 million units shipped in 2015 and will see its shipments grow “year-on-year by nearly 40 percent.