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Samsung bounces back to lead slowing smartphone market

Samsung bounces back to lead slowing smartphone market

Korean giant recovers from its Galaxy Note 7 recall fiasco.

Samsung has reclaimed top spot in New Zealand for now with Apple expected to refresh its iPhone later in the year.

Samsung has reclaimed top spot in New Zealand for now with Apple expected to refresh its iPhone later in the year.

Samsung has returned to the number one position in the New Zealand smartphone market.

The Korean giant reclaimed the position from Apple, who out-shipped Samsung during the fourth quarter of the 2016, according to analyst firm IDC’s first quarter smartphone shipment results.

Samsung reached 40% share, from 26% in the fourth quarter. Despite losing the top spot, Apple also grew in share from 31% to 38%.

Huawei and Vodafone surrendered share, falling from 21% to 11%, and 11% to 4% respectively.

The numbers come as the New Zealand smartphone market is facing a slowdown, IDC said.

Vendors shipped 244,000 smartphones during January to March 2017, down from 347,000 smartphones shipped over the same period in in 2016.

Many vendors shipped large quantities of devices into the channel late last year which continued to be sold over the first quarter. Given that, a decline in shipments year on year is not too surprising, said Chayse Gorton, client device analyst for IDC New Zealand.

"Samsung's result suggest that on a local level, the vendor has successfully bounced back from the highly publicised worldwide fiasco relating to the Note 7," Gorton said.

Samsung acted with New Zealand telcos to blacklist Note 7 devices on the New Zealand network, minimising potential problems. The shipment numbers show such efforts to minimise complications and losses in consumer confidence have largely been successful.

Gorton said the first quarter shipment numbers don’t include the recently released Galaxy S8. These went on sale in May 2017, so will help bolster Samsung's second quarter shipments.

Samsung's shipments were strengthened by its J-range and A-range along with its S7 range, offering consumers value at more affordable price points.

It will be game-on in the second half of the year, however. The expected launch of the 10th generation iPhone is set to boost Apple's shipments and again challenge Samsung for the leading position, Gorton said.

However, Samsung is also planning a new flagship phone for the second half.


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