The data on the distribution of the smartphone market in the second quarter of this year 2016 arrive, and the truth is that they are data that we cannot ignore. We cannot for various reasons. It follows the trend of Samsung and Apple as market dominators, with a growing Huawei that seems increasingly capable of challenging them for the position. Chinese companies are here to stay in the Top 5, and brands like LG sink almost permanently.
Samsung and Apple are still at the top
It does not seem a surprise that the two companies that dominate the market are still the same two that have done so quarter after quarter. There have been changes in the rest of the market over the years, but not between the two top-selling companies. Samsung and Apple are still the biggest smartphones sold in the second quarter. Samsung has had an especially interesting three months with the launch of the Samsung Galaxy S7, which has greatly benefited the company. Apple has lost some share, certainly, although it continues to retain second place. However, in this case it is already seriously threatened by Huawei.
Huawei aspires to the head
It seemed that Huawei was just a new Xiaomi, a new company that reached the Top 5 and then disappeared, and appeared again, and always be there but never compete with the giants. However, it has proven to be at a higher level than its rivals. In fact, it can already be considered as the third giant in the market. Nothing from Microsoft with its Lumia, nothing from Xiaomi, nothing from Nokia. Huawei is the company that has managed to reach a share of almost 10%, threatening the close to 15% that Apple has. These are figures that already promise a lot, and that should make those of Cupertino fear. It is true that while Huawei has recently launched a smartphone, Apple's great launch will take place in the second half of the year, and there they will again gain some margin, but what there is no doubt is that Huawei is established as the third company that sells the most mobiles.
OPPO and Vivo are still in the Top 5
Another surprise comes starring OPPO and VIvo. In the last analysis of the previous quarter, the two companies appeared in the Top 5. However, it was not clear if this was something temporary, or if they really had a future here. Now, with the second quarter figures in hand, it is clear that they are here to stay. OPPO and Vivo are still in the Top 5, so companies such as Xiaomi, LG or Sony are left out.
LG stars in the great fall
Although perhaps the worst part is LG. Yes it is true that Sony and HTC had suffered declines in the sales of the companies, but they had never competed with the larger ones. They had their market, a very specific one, and they had never tried to fight with the giants, something that LG had tried. But the company's downfall is total. Only the mid-range manages to save itself, and it will hardly be able to compete in the years to come with Chinese brands and with mobile phones from Huawei or Lenovo, for example. In the high-end, it is difficult to compete with Apple and Samsung, but they even have to compete with the staunch Sony and HTC, who continue to see these companies as the ideal high-end mobiles. In this situation, LG takes the worst part of this second quarter, starring in a not so expected drop, and placing itself in a strip in the market that is not very beneficial for them. They aspired to much more, and it does not seem that the future holds anything better than what they have right now. Everything is changing, and only Samsung and Apple –of the historical ones– aspire to remain in that Top 5 in the coming quarters.