Sunday, 23 September, 2018

Worldwide smartphone sales recorded first ever decline in Q4 2017

Global smartphone sales Samsung smartphones Gartner report MWC 2018 Apple iPhones feature phones Huawei Apple iPhone X Xiaomi flagship devices While Apple’s market share stabilised in the fourth quarter of 2017 compared to the same quarter in 2016 iPhone sales fell 5 per cent
Nina Mathis | 23 February, 2018, 06:48

At the same time, global sales of smartphones totalled 408 million units in the last quarter of 2017, according to Gartner research, representing a 5.6 per cent decline compared to the previous corresponding year. Despite the decrease in smartphone sales for the quarter, sales for 2017 overall actually increased by 2.7% from 2016, with over 1.5 billion phones sold globally.

Gartner says that the decline in sales is due to lack of low cost, quality smartphones and the users' preference for buying quality feature phones. "Second, replacement smartphone users are choosing quality models and keeping them longer, lengthening the replacement cycle of smartphones", Anshul Gupta, research director at Gartner, said in the statement. As mentioned, Apple saw a decline from Q4 2016 to Q4 2017 as well when they went from 77 million units sold down to 73.1 million.

Market leader Samsung saw its smartphone sales drop from 76.8 million a year ago to 74.0 million in 2018, although its market share increased from 17.8 percent to 18.2 percent, as consumers continued to buy fewer phones from less successful companies. For instance, while Gartner reports that Samsung took the top spot in the last quarter of 2017, IDC reported that Apple is at the top as well, so we advise you to take these reports with a grain of salt. At the same time, the combined market share of the Chinese vendors in the top five increased by 4.2 percentage points, while the market share of top two, Samsung (20.9%) and Apple, remained unchanged.

Samsung Electronics saw a year-on-year unit decline of 3.6% in the fourth quarter, though it stayed ahead of Apple in the number one position worldwide (see table below).




Apple's iPhone X wasn't enough to boost smartphone sales in the holiday quarter.

"Second, component shortages and manufacturing capacity constraints preceded a long delivery cycle for the iPhone X, which returned to normal by early December 2017".

Xiaomi's competitive smartphone portfolio consists of its Mi and Redmi models, which helped accelerate its growth in the emerging Asia-Pacific (APAC) market, as well as its regained hold in the domestic market shares back in China. Worldwide Smartphone Sales to End Users by Vendor in 2017 (Thousands of Units) Source: Gartner.

The report said Xiaomi's biggest market outside China is India. "Increasing sales in Indonesia and other markets in emerging APAC will position Xiaomi as a strong global brand". "Samsung is poised to announce the successors to its Galaxy series of smartphones at Mobile World Congress this year".

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