Even before its $2.9 billion for Motorola Mobility closes, Lenovo continues to show growth in smartphone sales. The latest report from research firm IDC shows Lenovo shipped a record number of phones in the second quarter and drove up its market share.
Lenovo also dropped a spot in the market share rankings to fourth from third as Taiwan rival Huawei grew even faster.
As we reported earlier today, Motorola Mobility reportedly is showing sales strength, so if the deal closes perhaps Lenovo will hit a goal of 80 million smartphones this year.
But the reality is, Lenovo, Huawei, LD and others remain far, far behind leaders Apple and Samsung.
Still, a look at the numbers and the assessment provided by IDC in its Quartertly Mobile Phone Tracker report, provides encouragement for the world’s No. 1 PC manufacturer. (Recent reports about PC shipments as well as tablet sales have included good news for Lenovo, too. So the company focused on “those who do” is rolling.)
“While less than 5% of Lenovo’s shipments were registered outside of China in the second quarter of 2013, this share nearly tripled in 2Q14, with emerging markets, particularly BRIIC countries, picking up the largest volumes,” IDC notes.
- Smartphone Statistics
According to IDC, Lenovo set a record for smartphone shipments of 15.8 million in the second quarter. That’s up an impressive 38.7 percent from a year ago.
Market share, meanwhile, increased to 5.4 percent from 4.7 percent.
Growing even faster was Huawei with 20.3 million phones, up an incredible 95 percent, and a market share of 6.9 percent, up from 4.3 percent in 2013.
Samsung (74.3 million, 2.5 percent market share) and Apple (35.1 million, 11.9 percent share) are No. 1 and 2 respectively. Apple shipments grew 12 percent while Samsung’s fell nearly 4 percent, thus shaving more than 6 percent off its market share lead.
- The Analysis
IDC offered the following analysis on each of the top 5 vendors:
- “Samsung saw the Galaxy S5 ship millions of units this quarter, despite the criticisms leveled at it, while S4 and even S3 volumes remained strong as more affordable alternatives. Collectively Samsung lost 7% market share compared to a year ago, despite having one of the largest smartphone portfolios of all OEMs. To maintain its position at the top, Samsung will need to focus on building momentum in markets dominated by local brands.
- “Apple’s second quarter is always its seasonal low of the year, but even more so this time in advance of the iPhone 6, with consumers holding their collective breath for the long-awaited bigger screens. Apple enjoyed continued success in the BRIC markets, a good sign that it is building its footprint in emerging markets. Given the pent-up demand, the third quarter could be a drought or a flood, depending on the timing of the next launch.
- “Huawei’s story centered on 4G LTE pick up, particularly in China, as all three national carriers subsidized 4G handsets like the P7 to encourage consumers to upgrade from 3G. Outside of China, large volumes of its lower-cost Y series fueled growth across most regions. The company continues to focus on broadening its global reach and the 2Q14 results show that the momentum is undoubtedly there.
- “Lenovo had a record quarter in China despite tremendous pressure from local brands. During the quarter, Lenovo saw increased success from the A788T, as well as the 3G A388T. And while its Motorola acquisition is undergoing approval, Lenovo continued to gain traction in international markets. While less than 5% of Lenovo’s shipments were registered outside of China in the second quarter of 2013, this share nearly tripled in 2Q14, with emerging markets, particularly BRIIC countries, picking up the largest volumes.
- “LG volumes were largely driven by its L series, helped by models like the L70, which performed well in many markets including the United States. With the G3 launched at the end of the quarter in Korea, greater volumes are expected to show up in the third quarter.”
More from IDC is available online.
[LENOVO ARCHIVE: Check out nine years of Lenovo stories as reported in WRAL TechWire.]