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Smartphone market enjoys modest Q2 growth, Canalys finds

27 Jul 16

Samsung’s virtual reality move has proved to be a wise one, as the smartphone market sees little improvement.

The global smartphone market has experienced modest growth for the second quarter of 2016, following what analyst firm Canalys says was a disappointing first quarter.

Global shipments reached over 330 million units, with Samsung leading the market with shipments around 80 million units, Canalys’ report shows.

According to Tim Coulling, a senior analyst at Canalys, a disappointing quarter a year ago led to favorable annual comparisons, while shipments were flat compared with Q1.

“The success of the Galaxy S7 together with a de-emphasis on the low end of its portfolio has led to a rise in handset ASP,” Coulling says.

“Samsung’s VR move has proved a wise one, with Gear VR bundles helping boost flagship handset sales.”

Apple shipped 40 million iPhones in Q2, a second consecutive annual decline in shipments, with the launch of the iPhone SE doing little to improve Apple’s fortunes.

Canalys analyst Rushabh Doshi explains, “Shipments in intended growth markets, such as China and India, saw little improvement as the price of the device kept it out of reach of the mass market, which typically sees strong shipments.

“Consumers instead opted for local vendors, whose build quality and specifications are a better value alternative,” Dosh says.

In third place, Huawei’s shipments increased to 31 million on the back of record shipments in China and continued growth in EMEA.

“Huawei has had an excellent start to 2016, with its leadership positon in China helping the global picture,’ says Coulling.

“Despite this strong start, it will need to continue breaking shipment records and improve its position in the US if it is to surpass its annual shipment target of 140 million units,” he says.

Apple earlier released its quarterly results, with earnings falling victim to the slump in iPhone sales.

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