Ready for Anything

Samsung Still Number-One Smartphone Vendor, Despite Note 7 Debacle

The Note 7 dented Samsung's brand image and left a large product gap in its premium smartphone lineup.
Samsung Still Number-One Smartphone Vendor, Despite Note 7 Debacle
Image credit: via PC Mag
2 min read
This story originally appeared on PCMag

Smartphone shipments grew 6 percent in the latest quarter as Samsung maintained its position at the top of the market despite that little exploding phone debacle, according to new research from Strategy Analytics.

The research firm on Thursday reported that smartphone makers around the world peddled 375.4 million units in the third quarter of 2016, up from 354.2 million units a year earlier.

"This was the smartphone industry's fastest growth rate for a year," Strategy Analytics Director Linda Sui said in a statement. "As expected, the global smartphone market reached a bottom in the first half of 2016, and the growth outlook for the second half of this year is improving due to several big new product launches from Apple, Huawei and others."

Samsung held on to its number-one position, but didn't exactly have a stellar quarter. The Note 7 maker shipped 75.3 million smartphones worldwide, down 10 percent from 83.8 million units in the third quarter of 2015. In the past year, the company's smartphone market share dropped from 24 percent to 20 percent.

"This was Samsung's slowest growth rate for almost two years," Strategy Analytics Executive Director Neil Mawston said in a statement. "Samsung's recent Galaxy Note 7 recall was handled badly, which dented its brand image and left a large product gap in its premium smartphone lineup. Samsung will now be looking to its next flagship launch, such as the rumored Galaxy S8 model, to recover momentum in 2017."

Apple also had a "lackluster" quarter, shipping 45.5 million smartphones worldwide. Cupertino's market share has also dropped in the past year -- from 14 percent to 12 percent.

"Apple has been given a slight boost by Samsung's Note 7 missteps, but it continues to face iPhone fatigue among many consumers in major regions such as China and Europe," Mawston said.

Three Chinese brands rounded out the top five -- Huawei came in third, followed by Oppo and Vivo. Facing increased competition from Chinese rivals, Huawei's smartphone growth rate more than halved, to 26 percent from 62 percent a year ago.

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.