Smartphone Shipments Grew 2.7% in 3Q17

According to preliminary results from IDC, smartphone OEMs shipped a total of 373.1 million smartphones worldwide in the third quarter of 2017 (3Q17). Third quarter volumes were up 2.7% year over year, and up 7.4% from the second quarter. Despite the annual growth being low, the fact that it is positive leading into the holiday quarter is a sign the industry still has momentum.

During the lead-in quarter to the holiday season all of the top 5 vendors experienced positive year-over-year growth, with Xiaomi growing the strongest by more than doubling its sales from this quarter a year ago. When all was said and done, the top 5 ranking did not change from the second quarter. Asia/Pacific, excluding China and Japan, performed the best by far. This market grew double digits, likely as a result of the continued slowdown in the China domestic market, which was close to flat year over year in 3Q17.

Samsung once again remained the overall leader in the worldwide smartphone market with 83.3 million units shipped, up 9.5% from last year. Their flagship devices continued to perform well. Despite the success of the three major models in the quarter, Samsung reported that overall revenue decreased within the mobile division quarter-on-quarter.

Apple's newest iPhones helped drive third-quarter shipments of 46.7 million units, up 2.6% from the 45.5 million units last year. For the first time in its history, Apple launched three new devices at their fall event. With the newly designed X just launching this quarter, demand for the new iPhone 8 and 8 Plus models was timid. Older iPhones such as the SE, 6S, and 7 all received price cuts late in the quarter.

Huawei continues to gain momentum in the market as the Chinese giant shipped 39.1 million units, climbing a healthy 16.1% from last year. The current Mate 9 and P10 flagship models continued to drive volume at the high end while Huawei's Honor brand also found success with the more affordable 6X and mid-tier Honor 8.

OPPO grew shipments 19% year over year in 3Q17 with 30.7 million smartphones shipped in the quarter. The company remained the number 4 ranked smartphone vendor worldwide and its continued expansion outside of mainland China continues to be a success.

Xiaomi remained in the number 5 ranking among worldwide smartphone vendors, but overall it had the strongest year-over-year growth. The company more than doubled its shipments from 13.6 million in 3Q16 to 27.6 million in 3Q17. The biggest catalyst for growth was success in the India market. Discounts on most of the models along with the aggressive bank offers and easy financing options made Xiaomi's top models attractive for online purchase