Samsung shrugs off Note 7 fiasco, extends market share lead

Limited availability of critical components later in the year could derail positive industry momentum, Gartner says

Tags: Gartner Inc. (www.gartner.com/technology/home.jsp)United Arab Emirates
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Samsung shrugs off Note 7 fiasco, extends market share lead Galaxy S8 and S8+ bringing customers back to the Samsung fold.
By  David Ndichu Published  August 29, 2017

Samsung's smartphone sales grew 7.5%, year over year in the second quarter of 2017, after three consecutive quarterly declines, Gartner said in a report.

The company had been hit hard by combustion problems with the Galaxy Note 7, but the Galaxy S8 and S8+ seem to be bringing back high demand for Samsung smartphones, the research firm added.  

Gartner also expects Samsung to grow for the whole year, despite growing competition from Chinese brands such as Huawei, Oppo and Vivo.

Apple's sales were flat (down 0.2 percent), year over year. However, Gartner predicts the new iOS 11, which will include augmented reality, machine learning, an improved Siri and a new display design, will likely fuel strong iPhone sales in the fourth quarter of 2017, and help Apple increase its sales in 2017.

Overall, global sales of smartphones to end users totalled 366.2 million units in the second quarter of 2017, a 6.7% increase over the second quarter of 2016. All types of smartphone registered growth in the quarter, compared with the second quarter of 2016.

Vivo and Oppo achieved the best performances in the second quarter of 2017, with year-over-year sales increases of 70.8% and 44.1%, respectively.

However, there is a concern about rising component costs, as well as limited supply, due to the reduced availability of critical components. A shortage of flash memory and OLED [organic light-emitting diode] displays will affect premium smartphone supply in the second half of 2017, Gartner warned, with Huawei's P10 reportedly suffering from a flash memory shortage.

In the smartphone operating system market, Android extended its lead with 87.7% market share, while iOS accounted for 12.1%.

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