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Have Windows Phones Peaked?

NEW YORK (TheStreet) -- Microsoft’s (MSFT - Get Report) Windows Phone platform registered a big drop in smartphone sales during the second quarter according to the results from latest global survey from IDC.

According to the company’s Worldwide Global Mobile Phone Tracker report, Windows Phone showed a nearly 10% year-over-year decline in worldwide handset shipments in the second quarter, down to 7.4 million units from 8.2 million units - resulting in a market share of 2.5%, down from 3.4% in the year ago quarter. Microsoft's market share increased, very slightly, from the first quarter.

IDC notes Microsoft’s OEM (original equipment manufacturer) partners have not changed significantly from a year ago, but that could start to change during the second half of 2014. A numerous new vendors within key emerging markets are expected to come on board, including BLU, India’s Micromax, Prestigio, Yezz, and others and will join Foxconn, Gionee, JSR, Karbonn, Lava, Lenovo, LG, Longcheer, and ZTE.

Read More: Nokia Lumia 635 Review: Microsoft's First Nokia Phone

Must Read: Nokia Lumia 635 Review: Microsoft's First Nokia Phone

Few new Windows phones have been announced so far this year, but Microsoft is expected to release two new mid-priced models, the Lumia 730 and 830, during the first week of September.

Microsoft shares were gaining 0.49%t to $44.49 in early morning trading in New York.

The survey delivered a lot better news for Google (GOOG) and Apple (AAPL).  IDC’s latest numbers show the combination of Android and iOS market share now accounts for a commanding 96.4% of all global smartphone shipments.

Overall, smartphone global smartphone shipments reached a new record high of 301.3 million units in the quarter with Android garnering an 84.7% global share - almost doubling the platform’s showing from only three years ago. Volume jumped from 191.5 to 222.3 million units.

Within the overall Android space, Samsung was the industry leader, accounting for nearly 30% of total shipments. But, those numbers show increased competition from companies including Xiaomi, Coolpad and Huawei is affecting the South Korean-based company. Samsung's market share was nearly 40% two years ago.

Samsung is expected to introduce an update of its expensive, super-large, super high-end Galaxy Note 4 phablet at an industry event in Berlin, early in September.

The second quarter has recently a slower sales period for Apple iOS handsets in the past few years. The iPhones’ year-over-year market share dropped to 11.7% from 13.0% in the year ago quarter, but shipment volumes rose, as Apple saw an increase to 35.2 million units, up from 31.2 million.

BlackBerry’s (BBRY) numbers continued to get worse, with year-over-year shipments plunging to 1.5 million, down from 6.7 million.

-- Written by Gary Krakow in New York.

To submit a news tip, send an email to

Gary Krakow is TheStreet's Senior Technology Correspondent.

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