Worldwide smartphone production volume totalled around 350 million units in the third quarter of 2016, representing a sequential quarterly increase of 10.4%, which is a new high for the year.
This is according to the latest report from global market research firm TrendForce, which notes smartphone shipments have steadily picked up since the second quarter - which reported a production volume of 315 million units.
Statista expects 1.8 billion smartphones to be shipped in 2018, with emerging markets taking the lead.
Chinese brands have maintained strong shipment growth and provided the growth momentum for the overall smartphone production volume in the third quarter, says TrendForce.
Statista expects China and India to account for nearly 37% of all smartphone shipments worldwide by 2019, it adds.
"The combined production volume from Chinese brands reached 168 million units in the third quarter, translating to a sequential quarterly increase of 18%, said TrendForce smartphone analyst Avril Wu.
"As in the previous quarter, the combined production volume of Chinese brands exceeded the combined production volume of leading brands Apple and Samsung."
The role of Chinese brands as the main driving force of global smartphone shipments is therefore firmly established, she says.
North America and Europe show a small variation in terms of smartphone shipments over the years, as these two developed markets, by 2019, are forecast to hold 10% and 14% of the share respectively, notes Statista.
Samsung fall out
In the fourth quarter, while Samsung deals with the fallout from Note 7's battery defect, Apple rests its hopes on the expansion of iPhone 7 shipments.
In early September, the world's top smartphone maker announced the recall of 2.5 million following reports of the phones catching fire.
Samsung has now permanently ended sales of the fire-prone Note 7 smartphone less than two months after its launch.
Airlines are also taking precautionary measures - South Africa Airways has banned the use of the Note 7 on all its flights and in the US the smartphone has also been banned from aircraft.
TrendForce says the discontinuation of the Note 7 will impact Samsung's performances going into the fourth quarter.
The self-combusting battery problem has forced Samsung to halt the production of its latest flagship smartphone.
Though the event has tarnished Samsung's reputation among consumers, how much effect it will have on the brand's smartphone shipments remains to be seen, says TrendForce.
Wu says much of the iPhone 7 production for 2016 will be taking place during the fourth quarter. "Furthermore, TrendForce has revised upward the production volume of iPhone 7 Plus on account of Samsung discontinuing Galaxy Note 7. Hence, iPhone production volume is expected to jump significantly towards the end of 2016."
According to TrendForce, many branded Android phone makers are seeking to fill the demand gap created by the discontinuation of Galaxy Note 7, and there is speculation as to whether Google can now make a strong push into the smartphone market with its Pixel series.
However, Wu pointed out that Google is unable to significantly expand the production of Pixel and Pixel XL because of the current supply shortage in the active-matrix organic light-emitting diode panel market.
TrendForce estimates the production volume of Pixel smartphones for 2016 to be fewer than 2 million units.
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