Lenovo fell from No. 3 to No. 5 in the worldwide smartphone market as its shipments plunged in the second quarter, according to data recently released by two market research firms.
The reports of Lenovo’s market share tumble come in the wake of the company’s announcement in June that it replaced the head of its mobile group.
Mobile products are a key component of Lenovo’s strategy to diversify beyond the PC. The company, which is based in China but has a headquarters in Morrisville, ranks No. 1 in P.C. and No. 3 in tablets. It had been ranked No. 3 in smartphones as well after acquiring Motorola Mobility last fall.
Lenovo’s smartphone shipments, including Motorola brand smartphones, fell 33.3 percent in the second quarter compared to a year ago, according to the latest report from IDC. A second research firm, Strategy Analytics, reported a similar trend.
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Woody Oh, a Strategy Analytics director, said in a prepared statement that the Lenovo and Motorola brands are “struggling with the transition from 3G to 4G smartphones in China and the United States.” Lenovo brand phones aren’t sold in the U.S.
IDC noted that Lenovo faced “steep home turf competition from both Xiaomi and Huawei” in China. Those two Chinese companies vaulted ahead of Lenovo in the rankings – Huawei ranked third after its shipments rose 48.1 percent, and Xiaomi ranked fourth.
“Outside of China, Lenovo continued to witness success in many emerging markets such as India with entry-level and mid-range models” that are sold over the Internet, IDC noted.
IDC added that “the Motorola brand within the Americas and Europe continues to thrive with the ultra-affordable second generation Moto E and entry-level to mid-range Moto G devices.”
Lenovo’s shipments fell despite growth in the overall market, which rose 11.6 percent compared to a year ago, according to IDC.
Samsung and Apple ranked first and second, respectively, in the worldwide smartphone market in the second quarter.
Lenovo accounted for 4.8 percent of the market in the second quarter, down from 5.2 percent a year ago, IDC reported.