July 26 (Bloomberg) -- Apple Inc.’s share of the global smartphone market fell to its lowest in three years in the second quarter as more consumers chose inexpensive handsets from Chinese makers over the iPhone.
Apple shipped 31.2 million devices for 13.6 percent of the global smartphone market, researcher Strategy Analytics reported yesterday. That’s down from a 16.6 percent share a year earlier and trails market leader Samsung Electronics Co.’s 76 million shipments and 33.1 percent market share, Boston, Massachusetts-based Strategy Analytics said.
The Cupertino, California-based smartphone maker lost share to Chinese makers Huawei Technologies Co and ZTE Corp., according to the report. Apple’s 20 percent increase during the quarter was less than half the smartphone industry’s 47 percent expansion pace, according to the report.
“Lower-priced smartphones continue to gain traction, but the key for vendors will be to keep prices low while still offering premium devices and services,” Ramon Llamas, research manager at International Data Corp. said in a separate report yesterday.
Apple posted its second-lowest year-over-year iPhone growth rate in almost four years as some buyers held off on purchases in advance of an expected next-generation device this fall, IDC said.
Apple’s global smartphone market share of 13.6 percent in the quarter was its lowest level since the second quarter of 2010, according to the estimates by Strategy Analytics.
“The current iPhone portfolio is under-performing and Apple is at risk of being trapped in a pincer movement between rival 3-inch Android models at the low-end and 5-inch Android models at the high-end,” Neil Mawston, executive director at Strategy Analytics, wrote in the report.
Apple is also losing share to LG Electronics Inc. of South Korea, according to both IDC and Strategy Analytics.
“LG was a star performer as global shipments doubled year-over-year,” Linda Sui, analyst at Strategy Analytics, said in the report. “If LG can expand its retail presence and marketing in major countries such as the U.S. or China, LG could quietly start to challenge Apple for second position.”
The top five global smartphone vendors in the second quarter by IDC’s ranking are: Samsung with 30.4 percent; Apple with 13.1 percent; LG with 5.1 percent; Lenovo with 4.7 percent and ZTE with 4.2 percent.
The ranking from Strategy Analytics shows Samsung at 33.1 percent; Apple with 13.6 percent; LG with 5.3 percent; ZTE with 5 percent and Huawei with 4.8 percent.
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