Global smartphone market gears up for Note 7 fallout

Latest Canalys figures show chart-topping rivals Samsung and Apple experience shipments decline in Q3 despite a six per cent market increase

Samsung is clinging on to pole position in the global smartphone market stakes, but the continuing problems with its Note 7 device have started to bite.

Globally, smartphone shipments stood at 355 million units for the third quarter of 2016, an increase of almost six per cent on the 336 million units shipped in the same quarter the previous year.

The Korean vendor admitted last month that it would be teaming up with UK partners and operators on a recall of Note 7 devices due to safety concerns.

It shipped 76.5 million units during Q3 2016, a drop of nearly nine per cent compared with 84 million in the same quarter 2015.

Comparatively, rival Apple's shipments also dropped five per cent to 45.5 million, down from 48 million in Q3 2015, with third-placed Huawei seeing a jump in shipments from 27 million to 33.4 million.

Continuing in its Chinese rival's vein, fourth-placed Oppo saw a phenomenal 142 per cent growth in shipments from 11.5 million to 27.9 million, with fifth-placed Vivo experiencing a 64 per cent leap in shipments from 11.1 million to 18.2 million.

Tim Coulling, senior analyst at Canalys, said: "Halting sales of the Note 7 had an impact on Samsung's shipments in Q3, but even a smooth launch would not have delivered year-on-year growth. With the recall commencing mid-way through September, it was too late in the quarter to have a positive effect on the competition.

"The Note is a relatively niche product in Samsung's portfolio, and the lack of competing products with a stylus means it is too early to identify potential winners. The danger for Samsung is that the Note 7 recall affects sales of other models in its portfolio.

"In this case, several vendors, including Apple and Huawei, will see higher than expected demand in Q4. But with Apple raising questions about meeting iPhone 7 demand and Huawei currently shipping below target, the advantage may rest with the latter."