Apple smartphone market share shrinks to three-year low

Apple's share of the smartphone market has shrunk, despite an overall growth in shipments, according to analyst house Strategy Analytics.

Strategy Analytics confirmed in its Q2 2013 Smartphone Shipments report that Apple's market share has dropped by more than three percent over the last year, now accounting for 13.6 percent of all smartphones shipped. Strategy Analytics executive director Neil Mawston said the drop is largely due to the company's inability to entice new users to its ecosystem, who continue to favour cheaper Android handsets.

"Apple shipped 31.2 million iPhones worldwide in Q2 2013, up from 26 million a year earlier. Apple grew just 20 percent annually during Q2 2013, which is less than half the overall smartphone industry average of 47 percent," Mawston said.

"Apple's global smartphone market share of 14 percent is at its lowest level since the second quarter of 2010. 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."

The drop in market share puts Apple firmly behind chief competitor Samsung, which currently holds a 33.1 percent share of the market, up from the 31.1 percent figure recorded last year.

Mawston said Samsung's growth is largely due to the popularity of the company's flagship Galaxy S4 handset, predicting a further boom later this year when the company releases its rumoured Galaxy Note 3 smartphone.

"Samsung grew 56 percent annually and shipped a record 76 million smartphones worldwide, capturing 33 percent market share in Q2 2013. Samsung shipped over two times more smartphones than Apple during the quarter. The flagship Galaxy S4 model experienced solid demand in China and worldwide, helping lift volumes. Samsung's next major flagship launch is likely to be the rumoured Note 3 model later this year," Mawston said.

Korean firm LG took third place, enjoying a 1.9 percent growth to take 5.3 percent of the market. Strategy Analytics analyst Linda Sui attributed the growth to the company's Nexus 4 smartphone: "LG was a star performer as global shipments doubled year-over-year to 12.1 million units in Q2 2013. LG captured a five percent share and maintained its position as the world's third-largest smartphone vendor for the second straight quarter."

"The popular Optimus and Nexus models have been the main drivers of LG's success. If LG can expand its retail presence and marketing in major countries such as the US or China, LG could quietly start to challenge Apple for second position."

The two Chinese smartphone makers ZTE and Huawei placed fourth and fifth, speaking for 5.0 percent and 4.8 percent of the market respectively.

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