iPhone shipments return to growth as the Galaxy S8 tests Android smartphone pricing limits

Samsung continued to lead the worldwide smartphone market in Q2 2017 with shipments of over 79 million units, leaving growth relatively flat. Apple held on to second place by shipping 41 million iPhones, increasing its annual shipments volume by 2%, despite anticipation building for a significant product refresh later in the year. Worldwide shipments of 38 million units, growth of 20% for Huawei, helped it close the gap with the leading pair and get within 3 million units of taking the second place from Apple. Oppo and Xiaomi were the top performers in fourth and fifth spot, growing shipments 44% and 52% respectively.

Over 340 million smartphones shipped in Q1 2017, an increase of almost 4% year on year. “The smartphone market continued to grow in Q2, despite India and China both slipping into decline,” commented Canalys Research Analyst Vincent Thielke. “Smartphone shipments to North America increased around 7% year on year, with Apple growing 10%. Apple outperformed Samsung despite the launch of the Galaxy S8, and growing anticipation for the next iPhone.”

“Shipments of the S8 have been strong in some regions, but there are signs that demand has been overestimated,” said Canalys Senior Analyst Tim Coulling. “Canalys’ channels research has revealed inventory buildup in Europe, which when combined with discounting in the US, indicates Samsung may be testing the limits of Android smartphone pricing. As Apple looks to refresh the iPhone, even with its unique user experience, it too must justify any significant price increases with tangible improvements to both feature set and design.”