Samsung Electronics Held Up by GalA, But Lacked Stamina... Overtaken by Apple in Q4

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[Asia Economy Reporter Joselgina] Apple showed strong momentum at the end of last year by surpassing Samsung Electronics' smartphone sales in the fourth quarter. This is the first time in two years that Apple has outpaced Samsung on a quarterly basis. However, Samsung succeeded in maintaining its position as the 'number one smartphone seller' for the year, thanks to strong sales of its mid-to-low-end Galaxy A series lineup.

According to market research firm Strategy Analytics on the 30th (local time), Apple's smartphone sales (based on shipments) reached 70.7 million units in the fourth quarter of last year, accounting for 18.9% of the total market. This exceeded Samsung Electronics' smartphone sales of 68.8 million units during the same period by approximately 2 million units. While Samsung's sales slightly decreased compared to the same quarter last year (68.8 million units), Apple’s sales increased by 7.3% (about 4.8 million units).

Neil Mawston of Strategy Analytics stated, "Samsung's market share remained in the 18% range in the fourth quarter of last year, maintaining relatively good performance from entry-level to premium segments," adding, "Recovery is evident as demand for Apple is increasing, especially in Asia and North America."

Following them, China’s Huawei ranked third with 56 million units. Telecoms.com reported, "When comparing only the fourth quarter results, Huawei was the biggest loser," noting that sales dropped by more than 7% compared to the fourth quarter of the previous year. In contrast, Xiaomi (33 million units) showed a 27% growth rate in the fourth quarter alone.

Another market research firm, Counterpoint Research, also reported that Apple’s fourth-quarter smartphone sales reached 72.9 million units, surpassing Samsung Electronics’ 70 million units. Neil Shah, Vice President of Counterpoint Research, explained to economic media CNBC, "Apple surpassed Samsung due to the popularity of the iPhone 11, replacement cycles for iPhone 6S and 7, and an improved user base." Meanwhile, IHS Markit estimated that Samsung’s fourth-quarter sales were 70.7 million units, ahead of Apple’s 67.7 million units.

Samsung maintained its top position on an annual basis. Strategy Analytics estimated that Samsung’s smartphone sales for the past year reached 294.1 million units, a 1.3% increase from the previous year. Huawei followed with 240.5 million units, surpassing Apple (197.4 million units) to take second place. In terms of market share, Samsung recorded 20.9%, Huawei 17.0%, and Apple 14.0%.

According to the U.S. IDC report released on the same day, Samsung held the lead with a 22% market share. However, despite the commercialization of 5G, the overall smartphone market shrank by about 2% compared to the previous year. Linda Sui of Strategy Analytics explained, "The smartphone market showed strong growth across India and Africa, but sharply declined in China," adding, "Demand is mixed." IDC analyzed, "The impact of the Chinese market downturn was significant," noting, "Although the decline was smaller than in 2018 (-4%), it is clear that the market has entered a mature phase."

This year, Apple’s launch of 5G smartphones is expected to drive the overall market, marking a return to growth after three years. However, concerns remain high over the U.S.-China trade war, and the recent global spread of the novel coronavirus infection (Wuhan pneumonia) originating from China is expected to disrupt supply chains. Apple CEO Tim Cook previously mentioned at an earnings announcement that "it is already affecting sales networks across China." Strategy Analytics identified the trade war and the novel coronavirus as the biggest obstacles to smartphone market growth this year.

This content was produced with the assistance of AI translation services.