CHINESE SMARTPHONE MAKERS, NOT APPLE, BENEFITED FROM SAMSUNG’S NOTE 7 DISASTER

It wouldn’t be unreasonable to assume that Samsung’s Galaxy Note seven ordeal drove sales of its nearest contestant, Apple, to record heights. After all, that's what some analysts expected — analysis firm KGI Securities was particularly optimistic, protrusive the Cupertino, California-based company would develop an extra five million to seven million orders within the third business quarter of 2016. however that clad to be faraway from the case. in keeping with Gartner, Chinses brands like Huawei and Oppo gained the foremost from Samsung’s woes.

Immediately following Samsung’s recall of the Note seven, Samsung’s third-quarter market share predictably fell from twenty three.6 p.c to nineteen.2 percent, the most important slide within the company’s history. Apple, astonishingly, followed suit: the iPhone maker saw a year-on-year dip in market share from thirteen p.c to eleven.5 p.c in Q3, its lowest since 2009. the autumn was particularly acute in U.S. and China, wherever sales of Apple devices declined by eight.5 and thirty one p.c, severally. “The iPhone seven struggled to simulate … sales” despite Samsung’s call to recall the Note seven,” Gartner wrote in its report.

Chinese smartphone brands, on the opposite hand, profited handsomely. Gartner reported  that Oppo physical science and BKK physical science, Chinese corporations based mostly within the solid ground, nearly doubled their market share within the third quarter. Sales from China created up eighty one p.c of Oppo’s profits and accounted for eighty nine p.c of BKK’s, and what is more, Chinese smartphone manufacturers dominated China’s list of vendors in Q3. Huawei terminated the quarter with nine.3 p.c market share, Oppo with seven p.c, and Vivo with five.8 percent.

The news wasn't all unhealthy for Apple, though. the corporate managed to ship forty five.5 million iPhones, down solely slightly from the forty eight million it oversubscribed in Q3 2015. That happened despite sluggish overall sales within the country — shipments of Chinese smartphones rose common fraction within the third quarter, to 362.9 million from 359.3 million in 2015’s third quarter. As 9to5Mac notes, Apple still captures quite 100% of all of the smartphone industry’s profits.

Still, news of Apple’s continued  struggles in China come back because the company’s stressed for declining growth. Sales of iPhones have slowed since the start of 2016 once Apple reported  its initial quarterly earnings decline in thirteen years. The smartphone maker is depending on the vacation season to assist jump-start sales of the iPhone seven and iPhone seven and.