In contrast, non-smartphone cellphone shipments dropped by 18% in 2013 and 23% in 2014. Moreover, IC Insights expects the 2015 non-smartphone cellphone unit shipment decline to be steeper than 2014’s drop with a decline of 27%. Total cellphone unit shipments grew by only 5% in 2014 and are forecast to grow by only 3% in 2015.

Samsung and Apple dominated the smartphone market in both 2013 and 2014. In total, these two companies shipped 457 million smartphones and held a combined 47% share of the total smartphone market in 2013. These two companies shipped over 500 million smartphones in 2014 (503.9 million), but their combined smartphone unit marketshare dropped seven percentage points to 40%. It appears that both Samsung and Apple are losing smartphone marketshare to the up-and-coming Chinese producers like Xiaomi, Yulong/Coolpad, and TCL.

In contrast to the weakening fortunes of Nokia, BlackBerry, and HTC, 2013-2014 smartphone sales from China-based Lenovo (which acquired Motorola’s smartphone business from Google in October of 2014), Huawei, Xiaomi, Yulong/Coolpad, and TCL surged. Combined, the six top-10 China-based smartphone suppliers shipped 359 million smartphones in 2014, a 79% increase from the 201 million smartphones these six companies shipped in 2013. As a result, the top six Chinese smartphone suppliers together held a 29% share of the worldwide smartphone market in 2014, up eight points from the 21% share these companies held in 2013.

In early 2015, there were numerous reports of slowing in the Chinese smartphone market. Since most of the Chinese smartphone producer’s sales are to Chinese customers, this slowdown became evident in their 1Q15 smartphone sales figures. In total, the top six China-based smartphone suppliers shipped 83.4 million smartphones and held a 25% share of the 1Q15 worldwide smartphone market, down four points from their 29% combined marketshare in 2014.

Chinese smartphone suppliers primarily serve the China and Asia-Pacific marketplaces. Their smartphones, unlike those from Apple, Sony, and HTC are low-cost low-end handsets that typically sell for less than $200. In some cases, smartphones sold by the Chinese companies have been known to sell for as little as $50.

With much of the growth in the smartphone market currently taking place in developing countries such as China and India, low-end smartphones are expected to be a driving force in the smartphone market over the next few years. IC Insights defines low-end smartphones as those that sell for $200 or less and high-end smartphones as those that sell for greater than $200.