While the smartphone market is continuing to grow strongly, the market leaders Apple and Samsung are losing share to price-competitive rivals, such as Huawei and Oppo.
That's according to the latest figures from analyst group Gartner, which counts almost 380 million smartphones sold in the first quarter of 2017, up from 348 million in the same period last year, with lost-cost producers Huawei, Oppo and Vivo accounting for almost one-quarter of these sales.
Bumper sales of the Huawei P9 and P9 Plus saw the company claim nine per cent of the global market, up from 8.3 per cent this time last year, while Oppo and Vivo bagged 8.1 per cent and 6.8 per cent of global smartphone sales, respectively.
"The top three Chinese smartphone manufacturers are driving sales with their competitively priced, high quality smartphones equipped with innovative features," said Anshul Gupta, research director at Gartner.
"Furthermore, aggressive marketing and sales promotion have further helped these brands to take share from other brands in markets such as India, Indonesia and Thailand."
This is bad news for Apple and Samsung, though, who both saw their respective slice of the market slump during the three month period.
Market leader Samsung shipped 78.67 million smartphones to claim 20.7 per cent of the market, down from a market share of 23.3 per cent this time last year. Along with the growth of Chinese brands, Gartner says this slump is to blame on the "absence of an alternative to the Note 7".
Apple sold 51.9 million smartphones during the first quarter, according to Gartner, which saw its market share dip from 14.8 per cent to 13.7 per cent.
"Sales of iPhones were flat, which led to a drop in market share year over year. Similar to Samsung, Apple is increasingly facing fierce competition from Chinese brands Oppo and Vivo, among others, and its performance in China is under attack," Gupta said.
Gartner also revealed that, during the first quarter, Android accounted for 86.1 per cent of the global market, while iOS claimed just 13.7 per cent.
‘Other operating systems', including BlackBerry 10 and Windows Phone, accounted for just 0.2 per cent of the market, down from 1.1 per cent this time last year.
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