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High-end smartphone models 'gradually' shrinking

Posted: 24 Jul 2013     Print Version  Bookmark and Share

Keywords:smartphone  TrendForce  Samsung  Apple  Lenovo 

Smartphone shipment for the second quarter of 2013 arrived at 22.10 crore units, up 6.6 per cent from Q1 and a 31.4 per cent increase from the same period a year ago. For the full year 2013, the worldwide smartphone shipment is expected to rise by approximately 32 per cent and end at 92.80 crore units, reported TrendForce.

"As mid-end smartphones are already able to fulfil the general entertainment and web browsing needs of smartphone users, models priced in the Rs.8,152.17-Rs.24,456.52 ($150-450) range are becoming increasingly more popular among consumers," claimed the market analyst. "The demand for high end smartphone models, by contrast, is gradually shrinking, and this is in turn limiting the potential profits available to high-end smartphone manufacturers."

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During 2Q13, the shipment of Samsung's entire smartphone line arrived at an estimated 7.10 crore units, which is a record high for the entire company. Although sales of the Galaxy S4 ended up falling short of expectations, TrendForce reckons that the Korean company may have still managed to ship a total of 2.30 crore Galaxy S4 handsets. The fact that Samsung was able to surpass its quarterly shipment record is mostly attributable to its shipment as well as sales performance in the mid end sector.

"Samsung's channel and brand marketing campaign efforts have so far paid off especially well in rapidly emerging markets such as China, where the Korean company remains one of the most widely recognised global smartphone brands. Even if Samsung is unable to meet expectations with its newest flagship device, the growing sales of its mid-entry level handsets could still help it maintain a dominant position within the global smartphone stage."

Facing increased competition from rivals such as Samsung, HTC, SONY, and LG, Apple managed to ship only 2.20 crore iPhone 5 units during the quarter. The shipment for Apple's entire iPhone line, on the other hand, ended at 2.70 crore units, a 30 per cent decrease QoQ, while the company's worldwide market share in Q2 dropped to 12.1 per cent.

"If the new model releases are delayed in 3Q13, Apple's 2H13 sales performances are in danger of worsening," stressed TrendForce.

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