Apple's Smartphone Shipments Grow Despite Samsung Galaxy S8, iPhone 8 Hype: Canalys

A new report about global smartphone shipments in Q2 2017 claims Samsung's growth rate was relatively flat, however Apple saw a 2 percent increase in shipments year-on-year. This growth in the quarter that saw the launch of the Samsung Galaxy S8 bucked the trend ahead of the hotly anticipated launch of the iPhone 8.

According to the report by market research firm Canalys, Samsung managed to sell 79 million smartphones in the second quarter, whereas last year it sold 80 million, seeing a slight dip. This flat growth rate is attributed to the high prices of the Samsung Galaxy S8 and Galaxy S8+ in the Android segment. Samsung had a lot of hopes from the Galaxy S8 to outperform this year, especially after the big Galaxy Note 7 fiasco that attracted huge losses for the company. But the shipments only barely met with last year's second quarter results, the report indicates, pointing the smartphone's high price and how that may have tested the bounds of the Android smartphone market.

Even with the flat growth rate, Samsung still retains the top spot, with Apple coming in second selling 41 million smartphones in the second quarter. The report claims that there is a 2 percent increase in shipments from last year's second quarter results. In Q2 2016, Apple managed to sell 40 million units. This increase in shipments is significant, as no new smartphone was launched by Apple in the second quarter, whereas its competitor Samsung launched the Galaxy S8 series. Also, the arrival of the tenth anniversary edition iPhone 8 this fall, and the anticipation building around it, did not stop customers from buying iPhones currently.

"Shipments of the [Galaxy] S8 have been strong in some regions, but there are signs that demand has been overestimated. 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," Canalys Senior Analyst Tim Coulling said in a statement.

Overall smartphone shipments in the world saw an increase of almost 4 percent year on year, despite a decline in big markets like India and China. Over 340 million smartphones were sold in total during the second quarter, and the third spot, after Apple, was taken surprisingly by Huawei. It managed a growth rate of 20 percent with 38 million units shipped in Q2. Last year in Q2, Huawei managed to sell 31 million smartphones. Oppo secured the fourth spot with 44 percent growth in shipments, while Xiaomi had the highest growth rate at 52 percent.