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Chronicles

The story behind the story

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Strategy Analytics: Apple captured 30% of smartphone marketshare in Q3 2017, Samsung took 25%, LG 17%, ZTE 12% and Motorola returned to top 5 with 5%

According to the latest research from our Wireless Smartphone Strategies (WSS) service, United States smartphone shipments fell 2 percent annually …

Smartphone Blog Neil Mawston

Context & Ripple Effects

Strategy Analytics' Wireless Smartphone Strategies service has been charting the same leaderboard for years, and this Q3 2017 US snapshot is an early frame of a consolidation story its own later reports complete. At the time, the American top 5 was still crowded: Apple led with 30%, Samsung held 25%, and three second-tier brands — LG at 17%, ZTE at 12%, and a returning Motorola at 5% — split the rest, even as total US shipments slipped 2% annually.

The follow-on coverage shows what happened to that middle of the table. Globally, Samsung rode the downturn to a five-year-high 23.8% share in Q1 2022 while smaller Android vendors shrank, and by Q1 2024 Counterpoint measured the US market with Apple flat at 52% and Samsung at 31% — the same two names, now holding over 80% between them.

First-order effects

  • Apple's 30% US lead in a shrinking market means its gains came at rivals' expense, with premium demand concentrating on one vendor while overall US shipments fell 2% annually.
  • ZTE's 12% and Motorola's return to the top 5 at 5% mark the high-water visibility of budget and carrier-channel brands in the US ranking.

Second-order effects

  • Samsung's response was to compete harder on volume: the related coverage shows it converting industry-wide declines into record share, hitting a five-year-high ~24% globally in Q1 2022.
  • Mid-tier vendors like LG and ZTE faced a squeeze from both ends — Apple pulling premium buyers and Samsung absorbing cost-conscious volume — leaving them the share that later US rankings no longer show them holding.

Third-order effects

  • If the pattern holds, the US market structurally becomes a two-vendor market: the 2024 Counterpoint reading of Apple at 52% and Samsung at 31% implies the 34 combined share points LG, ZTE, and Motorola held in this 2017 snapshot migrated almost entirely to the top two.
  • A consolidated duopoly shifts bargaining power toward carriers and component suppliers serving only two large US buyers, raising the entry bar that returned Motorola to the top 5 in 2017.

The trend: The US smartphone market is consolidating from a five-vendor field into an Apple-Samsung duopoly, with each downturn transferring share from mid-tier brands to the top two.