Over the last few years, the market for smartphones has shown the full potential giving birth to hundreds of companies, employing thousands of people and selling millions of units which translates into incredible profits. There are machines that are the pinnacle of technology in modern times, real gems. Easily give examples, please see the fantastic LG G4, the stylish Samsung Galaxy S6 Edge, the Sony Xperia Z5 Premium, which was the first device to be launched with a 4K screen, the iPhone 6, among many others we all know.
… But behind this apparent success worldwide, will continue this good health market? Or we may be about to watch the decline of it?
Decline, can certainly be too strong a word, but the truth is that the results of the second quarter were terrible for all manufacturers that distribute Android mobile devices. However and on the other hand, the second quarter went from strength to spare for Apple, which continues with continued growth.
But what does this mean in numbers?
The truth is in the same period of 2014, companies such as Samsung, HTC, LG, Sony, Motorola and Lenovo, dispatched about 129.4 million smartphones, a total of 301.4 million, representing 43% of the world market. This year and finished the second half, these numbers dropped enough, having this same group of manufacturers shipped only about 114.7 million devices for a total of 337.2 million, which shows that were shipped more products worldwide, but this group manufacturers could not keep up properly this increase.
Legend: mm – Billion | $ – Dollars | m – Millions
Looking at this table of results, the analysis leaves several questions, but there is a very direct: What the reason for these results?
Samsung has been over the past few days, a year ago here, losing breath. The South Korean brand, although the best devices from the market fails to attract the user to prices on devices that quickly fall into banality, this because the Android market is both promising as executioner. The latest examples are clear, whether the Galaxy S6 want the Galaxy S6 Edge have sales well below expectations, even though this market two large flags … but then came the Note 5 and …
In the case of HTC , the explanation may lie in the fact that the company provide the same product for three years running. Android consumers like new also the visual aspect, we want the brand mark a stark position in certain niche of the Android segment and HTC has tried but to no avail, even with a smartphone with high quality materials.
You LG , may have another or other explanations. The Korean company launched G4, which is one of the best cameras on the market, has been also well below the expected sales. But the innovations that have made, including the curved screens, has not managed a warm market impact. After the prices are also a factor that can lead consumers to think about it. With the price of a G4, can consumers buy better
Product Table shipped the last three years (in millions of dollars):
Legend: m – m | Q2 – Second Quarter
Apple in China and China in the Android
As we can see by these results, the truth is that while the Cupertino company continues a sustained growth, selling from year to year more and more devices, although in the last year It was China that ensured record profits. Counter-hand, Android smartphone manufacturers have been issuing fewer devices, which is also associated with the appearance of large Chinese manufacturers such as Huawei, Xiaomi, OnePlus, Oppo, among others, who have been producing very complete equipment, beautiful and cheaper. Incidentally, a trend that since 2014 already was anticipating.
These brands have the ability to create devices with technology used by said leading brands, such as Huawei, have the creativity to create anxiety among users, as can the OnePlus and have the ability to combine the best software and hardware at a price pack ever achieved by front-line manufacturers, as can the Xiaomi
And the economic crisis in China?
A few weeks ago, when the stock market crash in China has shaken the markets, the opinions were divided. Many experts believe that the impact is of concern but that China will be able to overcome the difficulties in the domestic economy, mainly because it has very powerful industries with products easily disposed of by the international market. One of these markets is that of smartphones and electronics.
This scenario can be beneficial for brands that do not depend on both the Chinese domestic market. Apple, for example, was heavily leveraged by the Chinese market, but now sees the US economy to begin again to grow and this can mitigate the Chinese crisis, with regard to selling technology.
In this final stretch of the year 2015, manufacturers have high expectations of millions of sales units, will rely on a complex scenario, but this market for smartphones is also supported by other devices such as smartwatches, it is only necessary to know how to work the offer, given the incredible number of players also this new fashion of “high electronic”.
E as to you, what do you think is the reason for this drop in sales?
The overspill
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