Gartner reports first-ever drop in smartphone market for Q4
23 February, 2018, 06:50 | Author: Simon Thompson
Global sales ofsmartphones to end users declined for the first time ever in the fourth quarter of 2017, analyst firm Gartner said on Thursday. 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.
The market researcher blamed the market contraction on a lack of quality low-priced smartphones, to win over feature phone users, as well as a longer replacement cycle for existing smartphone users, as new models offer few major improvements.
He added that while demand for high quality, 4G connectivity and better camera features remained strong, high expectations and few incremental benefits during replacement weakened smartphone sales.
Gartner also published global smartphones sales figures for the whole year, highlighting subtle gains for Samsung.
The drop in sales during Q4 2017 compared to Q4 2016 wasn't anything drastic, but seeing those numbers drop by 5.6% YoY was surprising as its the first yearly decline recorded since the agency began tracking the marketplace in 2004.
You can read the rest of Gartner's report here.
Huawei has achieved an increase of 7.6 percent and Xiaomi 79 percent in global smartphone sales and grew market share in the fourth quarter.
Samsung maintained its market leadership closing 2017 with more than 321 million units sold taking a total market share of 20.9 per cent, data from Gartner showed.
Apple dropped 5 per cent in the quarter to 73.17 million and the company should make up sales in the current quarter, said Gupta. According to Gartner's Gupta, the later availability of the iPhone X and component shortages its performance was overshadowed.
Gartner says it's expecting a delayed sales boost for Apple in the first quarter of 2018, now that the flagship's delivery cycle has returned to normal. Since then, each passing year saw smartphone sales increase or level off, until now.
Apple's iPhone X wasn't enough to boost smartphone sales in the holiday quarter.
"Future growth opportunities for Huawei will reside in winning market share in emerging APAC and the US", Gupta said. OPPO is another that made it into the top five of this list that also sold fewer smartphones during this same time period. Samsung is poised to announce the successors to its Galaxy series of smartphones at Mobile World Congress (MWC) this year.
"Apple was in a different position this quarter than it was 12 months before", said Gupta.
The Telsyte Australian Smartphone and Wearable Devices Market Study 2018 revealed strong growth driven by an Android replacement cycle.
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