- ZTE Takes RIM's Place as World's Fifth Largest Smartphone Manufacturer
  • ZTE Takes RIM's Place as World's Fifth Largest Smartphone Manufacturer

    A new press release by industry analyst firm, International Data Corporation (IDE), informs that despite a 1% growth in the mobile phone market year-over-year in the second quarter of 2012, BlackBerry no longer holds the position as the world's 5th largest smartphone manufacturer. In its place, Chinese manufacturer ZTE overtook RIM mainly due to shipments of its lower-cost entry-level smartphones in China. The threat however is that the phone maker has also grown in international sales, including the US and Latin America. The report mentions that in the U.S. the companies phones can be found under other brand names.

    The analyst group further mentions that Apple and Samsung shipped nearly half of the world's smartphones. This is based on their World Wide Quarterly Mobile Phone Tracker. Vendors shipped nearly 5 million more units in the second quarter of 2012 than they did in the second quarter of 2011. That's 406 million units in 2Q12 compared to 401.8 million units in the second quarter of last year.

    IDC believes that it will be more difficult to generate gains in marketshare in the coming months if growth continues at the current rate of 42.1% year-over-year, the lowest growth since the fourth quarter of 2009.

    The silver lining for RIM is that due to lack of brand equity, ZTE may face problems in continuing its rapid growth, as having a recognizable brand is a must if the company plans to prioritize smartphone sales outside of its home base in China. RIM currently is in the best position to continue positioning themselves in the emerging markets due to the large size and potential growth in the coming years. #TeamBlackBerry continues to hold a strong brand following in the US and around the world despite the slow transition to the QNX based BlackBerry 10 platform.

    Currently, the top 5 smartphone makers are:

    • Samsung
    • Apple
    • Nokia
    • HTC
    • ZTE

    Source: IDC

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