TrendForce Reports Global Smartphone Production Volume Totaled 1.36 Billion Units; Samsung Held On as Leader While OPPO and Vivo Burst into Global Top Five

TAIPEI, Taiwan–(BUSINESS WIRE)–#Apple–The global smartphone production volume for 2016 grew 4.7% annually to
reach 1.36 billion units in total, according to market research firm
TrendForce. Samsung continued to top the annual global ranking despite
the discontinuation of Galaxy Note 7, suffering a marginal decline of
3.3% compared with the 2015 figure. Chinese brands Huawei, OPPO and Vivo
respectively occupied the last three spots in the global top five and
followed closely behind the second-place Apple.

TrendForce points out that the total production volume of all Chinese
brands for 2016 was 629 million units, surpassing the volume of 519
million units jointly from Apple and Samsung. Going forward, Chinese
smartphone makers together are expected to account for around 50% of the
global market in 2017, posing even greater challenges to other
international brands.

Samsung saw declines for the second consecutive year and Apple’s
performance fell short of expectations

Samsung had a difficult 2016 in the smartphone market and the company
did not achieve its annual shipment target due to the fallout from the
battery defect in Galaxy Note 7. Samsung’s global market share also
contracted steadily, from 28% in 2014 to 25% in 2015 and then to 23% by
the end of 2016. Much of the market share loss was attributed to the
stiff competition from Chinese brands across all market segments, from
high-end to mid-range and low-end models. Samsung’s production volume
registered its second consecutive year of decline in 2016, falling by
3.3% compared with the prior year. Nonetheless, the brand was still the
leader in the annual global ranking. TrendForce anticipates that
Samsung’s smartphone business will keep struggling this year as well and
will likely post another drop in the annual production volume.

Apple’s iPhone production volume fell 11.5% annually to 209 million
units in 2016. The general reception to the major iPhone releases last
year – iPhone 7 and 7 Plus – was average at best as both models lacked
innovations that excite consumers. Though Apple was second place in 2016
ranking with 15.3% of the global market share, the market share
difference with the third-place Huawei was just around five percentage
points. The general market expectation for 2017 is that the next iPhone
release, which is the 10th anniversary edition (and currently labeled
“iPhone 8”), will shoulder the burden of driving sales for Apple.
However, TrendForce’s latest projection indicates single-digit growth
for this year’s iPhone production volume.

LG’s production volume performance not particularly impressive during
2016 as its flagship G5 did not gain significant traction in the market
upon release during the year’s first half. The brand’s performances in
mid-range and low-end segments were also generally lackluster. As a
result, LG was only able to increase its production volume by 10%
annually to 75 million units.

Strong performances from Chinese brands with Huawei, OPPO and Vivo
edging closer to leader Samsung and second-place Apple

Huawei’s heavy investments on R&D, particularly within its chip
subsidiary HiSilicon, continue to pay off dividends in terms of
obtaining in-house application processors and the accumulation of IPs.
The Chinese brands therefore have the strength to expand into overseas
markets with products of comparable qualities to those from its
international competitors. At the same time, it is able to avoid legal
challenges to its technology patents. Huawei currently uses in-house,
Kirin-series application processors for all its high-end devices and
continues to work with Qualcomm and MediaTek in the mid-range and
low-end device segments. Huawei also has developed good relationships
with major telecom companies worldwide. After surpassing the 100 million
mark in 2015, Huawei’s production volume increased by 21.3% annually in
2016 to reach 131 million units, giving the brand a secured third-place
spot in the ranking.

OPPO and Vivo are two Chinese smartphone brands that burst into the
market in 2016 with successful sales strategies and higher product
specifications. Added together, OPPO and Vivo’s production volume for
last year amounted to 180 million units. Furthermore, OPPO and Vivo
respectively displaced Lenovo and Xiaomi to take the fourth and fifth
place in the worldwide ranking.

The return of Nokia-branded products in the smartphone market is going
to be one of the highly anticipated events in the early 2017. Last May,
Foxconn’s subsidiary FIH Mobile acquired the Nokia brand and its mobile
phone business from Microsoft and at the same time entered a brand
licensing and patent agreement with HMD Global Oy (HMD). Supported by
Foxconn’s vast resources, Nokia is expected to release a new device at
the start of this year, generating new buzz in the market.

For further details and tables showing [1] Market Share Ranking of
Smartphone Brands Based on Annual Global Production Volume and
[2] Market Share Ranking of Chinese Smartphone Brands Based on Their
Total Annual Production Volume, please visit:

http://press.trendforce.com/press/20170125-2741.html

About TrendForce (www.trendforce.com)

TrendForce is a global provider of market intelligence on the technology
industries. Having served businesses for over a decade, the company has
built up a strong membership base of 500,000 subscribers residing the
technology and financial services sectors. TrendForce has established a
reputation as an organization that offers insightful and accurate
analysis of the technology industry through five major research
divisions: DRAMXchange, WitsView, LEDinside, EnergyTrend and Topology
Research Institute. Founded in Taipei, Taiwan in 2000, TrendForce has
extended its presence in China since 2004 with offices in Shenzhen and
Beijing.

Contacts

TrendForce
Ms. Pinchun Chou, +886-2-8978-6488 ext.669
pinchunchou@TrendForce.com
or
Mr.
Sean Lin, +886-2-8978-6488 ext. 667
seanlin@trendforce.com