Smartphone market enjoys best-ever quarter

Market expected to continue its record-breaking streak into next quarter

The smartphone market enjoyed its best-ever single quarter in the last three months, according to IDC, which said more than 12 vendors could make it into the top-five vendor rankings in Q3.

In Q2, a record 295.3 million units were shipped globally, up 23.1 per cent year on year and up 2.6 per cent compared with a "very strong" Q1.

The market is set for even bigger things in Q3, with IDC predicting that more than 300 million units will be shipped globally for the first time.

The analyst said the boom is down to a widespread price crash driven by a flurry of firms jumping on the smartphone bandwagon.

"Right now we have more than a dozen vendors that are capable of landing in the top five next quarter," said IDC analyst Ryan Reith. "A handful of these companies are currently operating in a single country, but no one should mistake that for complacency – they all recognise the opportunity that lies outside their home turf."

The "others" category – made up of all smartphone makers outside of the five largest – grew 38.7 per cent annually in Q2. The growth dwarfed that of market leaders Samsung and Apple, which saw their respective sales slump 3.9 per cent and grow 12.4 per cent annually in Q2.

Chinese giants Huawei and Lenovo grew massively over the same period, with the duo's respective shipments up 95.1 per cent and 38.7 per cent respectively.

IDC said Chinese firms were on a roll.

"As the death of the feature phone approaches more rapidly than before, it is the Chinese vendors that are ready to usher emerging-market consumers into smartphones," said IDC researcher Melissa Chau.

"The offer of smartphones at a much better value than the top global players, but with a stronger build quality and larger scale than local competitors, gives these vendors a precarious competitive advantage."