1. Home
  2. Artificial Intelligence (AI)
  3. Gartner Says Demand for 4G Smartphones in Emerging Markets Spurred Growth in Second Quarter of 2017

Gartner Says Demand for 4G Smartphones in Emerging Markets Spurred Growth in Second Quarter of 2017

0
0

Shortage of Components Will Affect Sales of Premium Smartphones in Second Half of Year

Global sales of smartphones to end users totaled 366.2 million units in the second quarter of 2017, a 6.7 percent increase over the second quarter of 2016, according to Gartner, Inc. In the smartphone operating system market, Android extended its lead with 87.7 percent market share, while iOS accounted for 12.1 percent.

“Although demand for utility smartphones remains strong, there is growing demand in emerging markets for 4G smartphones, with more storage, better processors and more advanced cameras. This is translating into higher demand for midpriced [$150 to $200] smartphones,” said Anshul Gupta, research director at Gartner.

Sales of all types of smartphone grew in the second quarter of 2017, compared with the second quarter of 2016. However, there is a concern about rising component costs, as well as limited supply, due to the reduced availability of critical components. “We expect a shortage of flash memory and OLED [organic light-emitting diode] displays will affect premium smartphone supply in the second half of 2017,” said Mr. Gupta. “We’ve already seen Huawei’s P10 suffer from a flash memory shortage, and smaller, traditional brands, such as HTC, LG and Sony, are stuck between aggressive Chinese brands and the dominating market shares of Samsung and Apple in the premium smartphone segment.”

Samsung’s smartphone sales grew 7.5 percent, year over year, after three consecutive quarterly declines (see Table 1). The company had been hit hard by problems with the Galaxy Note 7, but the Galaxy S8 and S8+ are bringing back high demand for Samsung smartphones. “Despite growing competition from Chinese brands such as Huawei, Oppo and Vivo, we expect Samsung to register growth in 2017,” said Mr. Gupta.

Table 1. Worldwide Smartphone Sales to End Users by Vendor in 2Q17 (Thousands of Units)

Vendor

2Q17
Units

2Q17 Market Share (%)

2Q16
Units

2Q16 Market Share (%)

Samsung

82,535.1

22.5

76,743.5

22.4

Apple

44,314.8

12.1

44,395.0

12.9

Huawei

35,964.3

9.8

30,670.7

8.9

Oppo

26,092.5

7.1

18,112.6

5.3

Vivo

24,324.6

6.6

14,240.5

4.1

Others

Total

153,003.1

366,234.4

41.8

100.0

159,190.3

343,352.5

46.4

100.0

Source: Gartner (August 2017)

Despite clearing the distribution channel of iPhone inventory amounting to 3.3 million units during the second quarter, Apple’s sales were flat (down 0.2 percent), year over year. “Apple’s sales in emerging markets are expected to grow as older-generation iPhones continue to attract buyers. The new iOS 11, which will include augmented reality, machine learning, an improved Siri and a new display design, will likely fuel strong iPhone sales in the fourth quarter of 2017, and help Apple increase its sales in 2017,” added Mr. Gupta.

Vivo and Oppo achieved the best performances in the second quarter of 2017, with year-over-year sales increases of 70.8 percent and 44.1 percent, respectively. Vivo’s smartphones with front-facing cameras have carved out a niche for themselves. “Vivo maintained second place in China and grew its sales internationally,” said Mr. Gupta. Similarly, Oppo secured its leading position in China by offering dual rear-facing and front-facing cameras.

Greater China and Emerging Asia/Pacific Markets Accounted for Nearly Half of Smartphone Sales

Greater China and emerging Asia/Pacific markets drove sales of smartphones in the second quarter of 2017, with market shares of (27.7 percent) and (21.4 percent), respectively (see Table 2).

Growing smartphone penetration of India, Indonesia and Southeast Asian countries drove a year-over-year rise in smartphone sales in the emerging Asia/Pacific group.

However, smartphone sales in Greater China declined, year over year, primarily due to longer replacement cycles and as users prefer to buy better smartphones. “Large vendors continued to strengthen their positions by increasing their market share, while smaller brands lost ground in Greater China,” said Mr. Gupta.

Sales in Western Europe returned to year-over-year growth, fueled especially by strong sales of Huawei and Samsung smartphones.

Table 2. Worldwide Top-Five Regions for Smartphone Sales to End Users in 2Q17 (Thousands of Units)

Region

2Q17
Units

2Q17 Market Share (%)

2Q16
Units

2Q16 Market Share (%)

Greater China

101,524.5

27.7

114,170.9

33.3

Emerging Asia/Pacific

78,243.1

21.4

59,429.7

17.3

North America

40,438.0

11.0

38,121.5

11.1

Western Europe

35,790.5

9.8

31,523.6

9.2

Latin America

32,867.2

9.0

33,050.3

9.6

Others

77,371.1

21.1

67,056.5

19.5

Total

366,234.4

100.0

343,352.5

100.0

Source: Gartner (August 2017)

Gartner clients can learn more in the following reports: “Market Share Alert: Preliminary, Mobile Phones, Worldwide, 2Q17” and “Market Share: Final PCs, Ultramobiles andMobilePhones, All Countries, 2Q17 Update.”

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company. The company helps business leaders across all major functions in every industry and enterprise size with the objective insights they need to make the right decisions. Gartner’s comprehensive suite of services delivers strategic advice and proven best practices to help clients succeed in their mission-critical priorities. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has more than 13,000 associates serving clients in 11,000 enterprises in 100 countries. For more information, visit www.gartner.com.

Categories:
Gartner Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 8,300 associates, including more than 1,800 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.

Featured Resources:

Related Articles:

| LATEST FEATURED RESOURCES

White Papers

‘All You Need to Know About Microsoft Windows Nano Server’ Veeam White Paper

Now updated for Windows Server 2016 GA release! You probably heard about Windows Nano Server already … but what is it exactly, and how do you get started with it? What value will it bring to your environment? Nano Server is a headless, 64-bit only deployment option for Windows Server 2016. Microsoft created this component specifically with […]

Downloads

Download Commvault VM Backup and Recovery: end-to-end VM backup, recovery and cloud management

Commvault’s ability to provide end-to-end VM backup, recovery and cloud management creates a significantly better way to build, protect and optimize VMs throughout their lifecycle. Our best-in-class software for VM backup, recovery and cloud management delivers a number of significant benefits, including: VM recovery with live recovery options; backup to and in the cloud; custom-fit […]

On-Demand Webinars

Architecting for today’s desktop environments – FSLogix On-Demand Webinar

October 19, 2017 Webinar with David Young, Solutions Architect and Product Champion, and Brandon Lee, Solutions Marketer. Video Recording of a live demo of FSLogix and an overview of the latest release of FSLogix Apps featuring Roaming XenApp Email Search and OneDrive App along with Skype for Business Global Address List and Device Based Licensing. […]

Latest Videos

Current State of EUC – E2EVC Video

Session from @E2EVC 2017 Orlando. For event information please visit www.e2evc.com/home. For slides, additional info etc please contact the presenter directly on Twitter. For best video and sound quality do visit the event! This video is from the fine folks at E2EVC Conference

Views All IT News on DABCC.com
Views All IT Videos on DABCC.com
Win a Tesla P100D

Visit Our Sponsors