Sector leader Apple has managed to boost revenue despite stagnant unit sales in the past couple of years by raising prices. Other smartphone makers—lacking the walled garden of Apple’s iOS operating system—have found that trick harder to pull off. Consumers find it easier to switch brands when they almost all use Google’s Android operating system.
This is exactly the predicament in which Samsung finds itself. The Korean technology giant shipped 72 million smartphones last quarter, 13% fewer than a year ago, according to Counterpoint Research. The largest Chinese phone makers, Huawei, Xiaomi, Oppo and Vivo, have swallowed much of its market share: they shipped a combined 152 million smartphones last quarter, 18% more than last year and twice as many as Samsung.