Omdia and IDC: Samsung regains lead in global smartphone market

The global smartphone market climbed 28.1% year on year to reach total shipments of 351.1 million units in the first quarter of 2021, according to preliminary data from Informa owned Omdia. That gain consolidates the smartphone market’s recent recovery after it posted its first annual growth since Q3 2019 in the final quarter of 2020.  However, Omdia said 2021 is set to be a year of transition with Huawei’s role continuing to change, LG exiting the market and a severe semiconductor shortage affecting sales.

Samsung took over the top spot from Apple in the first 3 months of 2021, shipping 76.1 million units, up 29.2 percent year on year, to reach 22 percent of the market. The company was able to increase shipments by 22.8 percent from Q4 2020 thanks in part to an early update to the Galaxy S line as well as the launch of its latest range of devices in the A series.

Apple followed its blockbuster Q4 2020 with another significant year on year growth of 46.5% to reach 56.4 million units shipped in the quarter, equivalent to 16% of the market, followed in third place by Xiaomi with 14% after shipping 49.5 million units, up 78.3% year on year.

Two more Chinese smartphone brands – Oppo and Vivo – continue to battle for fourth and fifth place in the global rankings and remain tied on 11 percent of the market. Vivo shipped 38.2 million units, just above the 37.8 million units Oppo shipped in Q1.

Year on year, Vivo grew shipments by 95.9 percent and Oppo by 85.3 percent, as they overtook Huawei, which slipped out of the top 5 global smartphone OEM ranking after shipping 14.7 million units, some 70 percent less than in Q1 2020, not including the 3.6 million units shipped by its sub-brand Honor, which is now an independent entity.

Top 10 Shipments per manufacturer

Rank OEM 1Q21 4Q20 1Q20 QoQ YoY
Shipment (m) M/S Shipment (m) M/S Shipment (m) M/S
1 Samsung 76.1 22% 62.0 16% 58.9 21% 22.8% 29.2%
2 Apple 56.4 16% 84.5 22% 38.5 14% -33.3% 46.5%
3 Xiaomi 49.5 14% 47.2 12% 27.8 10% 4.9% 78.3%
4 vivo 38.2 11% 34.5 9% 19.5 7% 10.7% 95.9%
5 Oppo 37.8 11% 34.0 9% 20.4 7% 11.1% 85.3%
6 Huawei 14.7 4% 33.0 9% 49.0 18% -55.5% -70.0%
7 Motorola 12.6 4% 9.8 3% 5.5 2% 28.6% 128.1%
8 Realme 11.4 3% 14.3 4% 6.1 2% -20.3% 86.9%
9 Tecno 8.2 2% 7.7 2% 3.5 1% 6.5% 133.4%
10 LG 6.8 2% 8.4 2% 5.4 2% -18.9% 26.2%
Others 41.3 12% 46.4 12% 41.1 15% -11.0% 0.6%
Total 353.0 100% 381.8 100% 275.7 100% -7.5% 28.1%

Gerrit Schneemann, principal analyst at Omdia commented: “The smartphone market continues to show resiliency in the face of multiple challenges. The global component supply shortage is looming large over the market. On the other hand, two well-known smartphone brands will disappear from the global smartphone market this year, in Huawei and LG, opening the door for other brands to reach new markets and buyers.”

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Separately, International Data Corporation (IDC) said that the smartphone market accelerated in the first quarter of 2021 (1Q-2021) with 25.5% year-over-year shipment growth.

According to preliminary data from the (IDCWorldwide Quarterly Mobile Phone Tracker, smartphone vendors shipped nearly 346 million devices during the quarter. The strong growth came from all regions with the greatest gains coming from China and Asia/Pacific (excluding Japan and China). As the two largest regions globally, accounting for half of all global shipments, these regions experienced 30% and 28% year-over-year growth, respectively.

“The recovery is proceeding faster than we expected, clearly demonstrating a healthy appetite for smartphones globally. But amidst this phenomenal growth, we must remember that we are comparing against one of the worst quarters in smartphone history,1Q20, the start of the pandemic when the bulk of the supply chain was at a halt and China was in full lockdown,” said Nabila Popal, research director with IDC’s Worldwide Mobile Device Trackers. “However, the growth is still very real; when compared to two years ago (1Q19), shipments are 11% higher. The growth is coming from years of repressed refresh cycles with a boost from 5G. But above all, it is a clear illustration of how smartphones are becoming an increasingly important element of our everyday life – a trend that is expected to continue as we head into a post-pandemic world with many consumers carrying forward the new smartphone use cases which emerged from the pandemic.”

As the smartphone market is recovering, a major shift is happening in the competitive landscape. Huawei is finally out of the Top 5 for the first time in many years, after suffering heavy declines under the increased weight of U.S. sanctions. Taking advantage of this are the Chinese vendors Xiaomi, OPPO, and vivo, which all grew share over last quarter landing them in 3rd, 4th, and 5th places globally during the quarter with 14.1%, 10.8%, and 10.1% share, respectively. All three vendors are increasing their focus in international markets where Huawei had grown its share in recent years. In the low- to mid-priced segment, it is these vendors that are gaining the most from Huawei’s decline, while most of the high-end share is going to Apple and Samsung. Samsung regained the top spot in 1Q21 with impressive shipments of 75.3 million and 21.8% share. The new S21 series did well for Samsung, mainly thanks to a successful pricing strategy shaving off $200 from last year’s flagship launch. Apple, with continued success of its iPhone 12 series, lost some share from their very strong holiday quarter but still shipped an impressive 55.2 million iPhones grabbing 16.0% share.

“While Huawei continues its decline in the smartphone market, we’ve also learned that LG is exiting the market altogether,” said Ryan Reith, program vice president with IDC’s Worldwide Mobile Device Trackers. “Most of LG’s volume was in the Americas with North America accounting for over 50% of its volume and Latin America another 30%. Despite the vendor losing ground in recent years, they still had 9% of the North America market and 6% of Latin America. Their exit creates some immediate opportunity for other brands. With competition being more cutthroat than ever, especially at the low-end, it is safe to assume that 6-10 brands are eyeing this share opportunity.”

Top 5 Smartphone Companies, Worldwide Shipments, Market Share, and Year-Over-Year Growth, Q1 2021 (shipments in millions of units)
Company 1Q21 Shipment Volumes 1Q21 Market Share 1Q20 Shipment Volumes 1Q20 Market Share Year-Over-Year Change
1. Samsung 75.3 21.8% 58.4 21.2% 28.8%
2. Apple 55.2 16.0% 36.7 13.3% 50.4%
3. Xiaomi 48.6 14.1% 29.5 10.7% 64.8%
4. OPPO 37.5 10.8% 22.8 8.3% 64.5%
5. vivo 34.9 10.1% 24.8 9.0% 40.7%
Others 94.1 27.2% 103.0 37.4% -8.7%
Total 345.5 100.0% 275.2 100.0% 25.5%
Source: IDC Quarterly Mobile Phone Tracker, April 28, 2021

Notes:

  • Data are preliminary and subject to change.
  • Company shipments are branded device shipments and exclude OEM sales for all vendors.
  • The “Company” represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
  • Figures represent new shipments only and exclude refurbished units.

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Closing Comment:

“Globally, the top five vendors combined took a 76% market share in Q1 2021, up from 71% a year ago. Chip shortages and supply side constraints did not have a significant impact in Q1 among the top 5 brands,” said Linda Sui, senior director, Strategy Analytics. Samsung’s newly launched A series 4G and 5G phones, and the earlier launched Galaxy S21 series combined drove solid performance in the quarter. Xiaomi maintained strong momentum in both India and China, and the expansion in Europe, Latin America and Africa region also started to bear fruit.

Note: Strategy Analytics said the global smartphone shipments were 340 million units in Q1 2021, up over 24% (year-on-year) representing the highest growth since 2015. The smartphone market rebound was driven by the healthy demand of consumers with aging devices and a phenomenal 5G push from Chinese smartphone vendors.

References:

https://omdia.tech.informa.com/pr/2021-apr/global-smartphone-market-grows-28

https://www.idc.com/getdoc.jsp?containerId=prUS47646721

https://www.idc.com/tracker/showproductinfo.jsp?containerId=IDC_P8397

https://www.businesswire.com/news/home/20210419005789/en/Strategy-Analytics-Global-Smartphone-Shipments-Surge-to-340-Million-units-Up-24-YoY-in-Q1-2021

IoT Market Research: Internet Of Things Eclipses The Internet Of People

by Patrick Seitz, Investors Business Daily

For years, technologists have talked about the coming age of IoT, or the Internet of Things.   For every person on the internet doing work or being entertained, a multitude of machines are automatically reporting device location, temperature, speed and other status data online. About 4 billion people use the internet. But that number is dwarfed by the roughly 12 billion devices sending data over the internet, often with little or no human intervention.

And the movement is just getting started. Research firm IHS Markit expects the number of machines linked to the internet to more than quadruple, reaching 55 billion, by 2025. That leaves a lot more room to run.

“We’re just starting to move out of the pilot phase,” IDC analyst Carrie MacGillivray said.

Tech companies big and small are scrambling to make their mark in the still-emerging IoT field, which promises to be a huge financial opportunity. They range from chip companies selling sensors and processors for IoT devices to software firms that want to store and analyze data collected from those billions of devices.

IDC predicts that spending on IoT hardware, software and services will reach $1.2 trillion by 2022. That compares with $630 billion in 2017. IDC sees the market posting a compound annual growth rate of 13.5% over that period.  “It will reach critical mass by 2020,” IDC’s MacGillivray said.

Internet of Things (IoT) concept

One analyst expects the number of machines linked to the internet to more than quadruple, reaching 55 billion, by 2025. (©Dave Culter)

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Some niches are well into deployment, such as smart meter readers. Instead of sending out workers house to house to record water, gas and electricity usage, devices transmit that data directly to the company.

The basic building blocks of the Internet of Things are connectivity, distributed computing and platforms, IHS Markit’s Short said. Those building blocks are available today, but companies are still sorting out best practices.

“They’re not sexy to talk about, but they are legitimately transformative,” he said.

Whichever companies can establish the leading software platforms and ecosystems will win the market, Short said.

IHS Markit is tracking over 400 different IoT software platforms now covering connectivity, applications and data exchange. Customers are having to mix and match from a dizzying array of offerings to make complete IoT systems.

Short expects to see major players like Microsoft acquiring smaller software firms so they can build out their Internet of Things offerings and reduce the complexity of systems. Security for those systems also is a major concern that’s being addressed.

“Obviously there is going to be a lot of consolidation as those companies get bought up,” he said.

The way Zebra sees it, the business of Internet of Things involves three steps: sense, analyze and act. Sensors report the status of inventory or equipment, systems analyze the data and then businesses take action based on what they interpret from the data.

The next step for the Internet of Things will involve artificial intelligence and automation of responses to the collected data.

The exciting part of the industrial Internet of Things will come when companies start analyzing all the data they are collecting from IoT devices to garner useful insights to improve their operations, Short says.

That means going beyond simple asset tracking into data mining and simulations using artificial intelligence.

“When you start to implement multiple of these technologies is where you start to see the power,” Short said.

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From Business Insider:

 

 

Here are some key takeaways from Business Insider report:

  • We project that there will be more than 55 billion IoT devices by 2025, up from about 9 billion in 2017.
  • We forecast that there will be nearly $15 trillion in aggregate IoT investment between 2017 and 2025, with survey data showing that companies’ plans to invest in IoT solutions are accelerating.
  • The report highlights the opinions and experiences of IoT decision-makers on topics that include: drivers for adoption; major challenges and pain points; deployment and maturity of IoT implementations; investment in and utilization of devices; the decision-making process; and forward- looking plans.

In full, the report:

  • Provides a primer on the basics of the IoT ecosystem.
  • Offers forecasts for the IoT moving forward, and highlights areas of interest in the coming years.
  • Looks at who is and is not adopting the IoT, and why.
  • Highlights drivers and challenges facing companies that are implementing IoT solutions