Losses by Samsung and Apple Spell Gains for Huawei

Smartphones have started 2016 rough. The first quarter was the first time in history for the global market of smartphones that a contraction in sales occurred on an annualized basis, said Strategy Analytics an online research firm.

That concern was seconded by IDC, which reported 334.9 million mobile handsets had been shipped worldwide during the 2016 first quarter, marking the smallest growth for year over year.

The company said that the strong saturation of smartphones in the developed markets, along with a decline of year over year for both Samsung and Apple were the two major reasons for the dip.

Samsung, despite an annual drop of 4%, kept its place at the top with 24% of the smartphone global market. The company, based in South Korean shipped over 79 million mobile handsets across the globe during the 2016 first quarter.

At the same time, Apple was second with 51.2 million, which dropped the market share for the Cupertino. California based company to 15% from 18%.

The analytics company said that Apple was up against iPhone fatigue as well as pressure mounting for the company to innovate something new and different to give the handset a wow factor.

China based Huawei retained third place on the list with a market share of 8%, which was up from its 5% one year ago.

The maker of smartphones saw annual growth of 64%, shipping over 28.3 million handsets worldwide during the quarter.

Huawei has closed the gap with Apple but is also being chased by the likes of Vivo and Oppo, said the analytics company.

IDC agreed suggesting that Huawei, Oppo and Vivo, which pushed out players in the top five previously such as Xiaomi and Lenovo will end victoriously in 2016.

However, the brands are not known for the most part outside of China, and must break into the Western European and U.S. market if they want to compete with the giants like Samsung and Apple.

Huawei is much further along with international brand recognition, but it still has problems with sales outside China and that includes other big names such as Lenovo, Xiaomi, Vivo and Oppo.

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