Figures show Samsung losing ground in smartphone market

17 Jul 2014

Image via Pedro II/Shutterstock

Samsung’s smartphone marketshare is being eaten from the top and the bottom as Chinese manufacturers are stealing the low-cost market while Apple is gaining in the upper tier.

Reuters cites a survey from research firm Counterpoint which found that, in May 2014, sales of the iPhone 5s reached 7m while Samsung’s Galaxy S5 trailed behind at 5m. Despite the S5 being the fresher of the two flagship smartphones, having been released in late March, its performance has yet to measure up to the S4’s sales against the iPhone 5, though the South Korean company remains confident the S5 will outshine its predecessor.

Counterpoint surveyed retailers in 35 markets accounting for nearly 90pc of global smartphone sales, so these figures relate directly to units sold rather than the typically cited stats on units shipped.

According to data from research firm Canalys, Samsung’s marketshare in the first quarter of 2014 fell from 20pc to 18pc year-on-year, while China’s Xiaomi and Lenovo are making gains by providing cheaper alternatives of greater and greater quality.

Counterpoint smartphones ranking May 2014

Source: Counterpoint

Global smartphone shipments are expected to slow this year, heightening competition for both new consumers seeking affordable devices and early adopters willing to part cash for the hottest technology.

According to Counterpoint, a number of phones just missed out on the top 10 including Sony’s Xperia Z1, Motorola’s Moto G with some other notable inclusions such as Huawei’s Honor 3C and LG’s G2.

At its second-quarter earnings call last week, Samsung reported a profit slump, which has been attributed to the increasing competitiveness in the Chinese market. While 2013 has been a record year for Samsung’s profits, the firm is now said to be on track for its worst quarterly profit in two years.

The Galaxy smartphone-maker won’t go down without a fight, though, and is expected to unveil a new flagship device, the Galaxy Alpha, in early September – the same month we also expect to see an iPhone 6 from Apple.

Smartphones image by Pedro II via Shutterstock

Elaine Burke is the host of For Tech’s Sake, a co-production from Silicon Republic and The HeadStuff Podcast Network. She was previously the editor of Silicon Republic.