Is the iPhone Falling Behind in the Global Smartphone Market?


Nonetheless, Apple’s 31.2 million iPhone unit shipments secured the Cupertino-based company a 13.1 percent share of the global smartphone market, and a second-place ranking after Samsung (SSNLF.PK), despite the fact that its flagship iPhone 5 model has been on the market for three quarters. The IDC report also notes that many Apple buyers are likely delaying their next iPhone purchases in anticipation of new device launches this fall.

“The smartphone market is still a rising tide that’s lifting many ships. Though Samsung and Apple are the dominant players, the market is as fragmented as ever. There is ample opportunity for smartphone vendors with differentiated offerings,” states IDC Senior Research Analyst Kevin Restivo. The report also notes that Apple is widely expected to launch a lower-cost iPhone model this fall, which will likely boost its share of the worldwide market.

Apple’s rival smartphone maker Samsung also had a low growth rate of 43.9 percent. This was below the industry’s year-over-year average growth rate of 52.3 percent, although it was still more than double Apple’s growth rate last quarter.  Chinese smartphone maker Lenovo (LNVGY.PK) had the highest rate of year-over-year growth at 130.6 percent, thanks in large part to high shipment unit numbers in its domestic market.

Sequentially, the smartphone market grew by 10 percent, with total unit shipments of 237.9 million last quarter, compared to 216.3 million units shipped in the first quarter of 2013. In the overall mobile phone market, Apple took third place, after Finnish phone maker Nokia (NYSE:NOK). Samsung retained its position as the number one mobile phone vendor in the world, with a 26.2 percent share of the market.

Here’s how Apple traded on Friday:

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