Samsung is still the leader in the smartphone marker

The worldwide smartphone market began the year with an expected retrenchment from holiday quarter shipment volumes, but still posted a year-over-year increase in the first quarter of 2014 (1Q14). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 281.5 million smartphones worldwide, up 28.6% from the 218.8 million units in 1Q13 but down -2.8% from the 289.6 million units shipped in 4Q13. The results beat IDC's forecast of 267.2 million units for the first quarter of 2014 by 5.3%.

In the worldwide mobile phone market (inclusive of smartphones), vendors shipped 448.6 million units, up 3.9% from the 431.8 million units shipped 1Q13 but down -9.0% from the 492.8 million units shipped in 4Q13. This is 0.6% lower than the 451.3 million units IDC had forecast for the quarter. Smartphones accounted for 62.7% of all mobile phone shipments in 1Q14, up from the 50.7% of all mobile phone shipments in 1Q13. 
 
In this scenario, Samsung had shipped more smartphones than the next four vendors combined. While the company relied on its high-end smartphones within mature markets and its deep selection of entry and mid-range models in emerging markets, Samsung unveiled and launched its flagship Galaxy S5 within select markets.  The company captured 22.3 percent of the market with 11.2 million tablets sold. Its market share has fallen from 32 percent a year ago.

Apple reached a new first quarter record, breaching the 40 million unit mark. The company saw double-digit growth in Japan as well as across multiple developing markets, including Brazil, China, India, and Indonesia. Still, this made for the lowest year-over-year improvement among the leading vendors. What remains to be seen is when – not if – Apple's rumored large-screen models will arrive on the market, filling a gap in the company's portfolio that has been exploited by the competition.

IDC expects total smartphone shipment volumes to reach 1.2 billion units in 2014, up 19.3% year over year from the 1.0 billion units shipped in 2013. This marks a slowdown from the 39.2% growth seen in 2013. "The lower growth rate for 2014 should not be interpreted as a sign that the market has come as far as it can," said Ramon Llamas, Research Manager in IDC's Mobile Phone team. "In fact, there will be plenty to observe. Apple's entry into China is only the start of where it has yet to go. The introduction of Nokia's Android-powered X-series as well as Microsoft's recently completed acquisition of Nokia marks a new era for both companies. Numerous companies outside of Samsung and Apple, fueled by acquisitions and new strategies, will make a run at position and market share. In all, there are multiple dynamic trends in the making, which will make for an interesting year."