Global Smartphone Market Shrinks 0.4% in Q3 on Weak Demand

Global sales of smartphones to end users continued to autumn in the 3rd quarter (Q3) of 2019, contracting by 0.4 per cent compared with Q3 of 2018, as demand remained weak because consumers became more concerned about getting value for coin, a new report by Gartner Inc. said on Tuesday.

Despite the decline, Huawei was the only one of the elevation-five global smartphone vendors to reach double-digit growth in the sales in Q3, 2019. The company sold 65.viii million smartphones, which is an increase of 26 per cent, year over year. Its performance in China was the key driver of its global smartphone sales growth. It sold 40.5 million smartphones in Red china and increased its share of the country's market past nigh xv percent points.

Even so, Apple recorded another double-digit turn down in sales, year over year. "For the bulk of smartphone users, desire has shifted away from owning the least expensive smartphone. Today's smartphone user is opting for mid tier smartphones over premium-tier ones considering they offer amend value for coin. In addition, while waiting for 5G network coverage to increase to more than countries, smartphone users are delaying their purchase decisions until 2020", Anshul Gupta, Senior Inquiry Director at Gartner, said in a statement.

This shift has led brands such every bit Huawei, Samsung, Xiaomi, Oppo and Vivo to strengthen their entry-level and mid tier portfolios. This strategy helped Huawei, Samsung and Oppo grow in Q3, 2019.

Samsung maintained the top 1 position globally in Q3, 2019, by increasing its smartphone sales past 7.8 per cent, year over year. "Samsung'south aggressive revamp of its portfolio, with a focus on midtier and entry-tier segments, strengthened its competitive position", noted Gupta.

While the ban on Huawei to access cardinal US technologies is yet to be fully implemented as a 3-month extension was just announced, the proposed ban brought negativity around Huawei' brand in the international market. Nevertheless, Huawei'due south potent ecosystem in China continued to bear witness growth. The current situation with the US has too fostered patriotism among its partners, which are at present keener to promote its smartphones in China — a development that makes information technology hard for local competitors to compete aggressively against Huawei.

Apple's iPhone sales continued to decline i Q3, 2019 and it sold 40.viii million iPhones, a year-over-year turn down of 10.7 per cent. "Although Apple tree continued its sales promotion and discounts in various markets, this was not enough to stimulate demand globally. In the Greater People's republic of china market sales of iPhones continued to better, withal, it follows a double-digit decline recorded at the showtime of the twelvemonth", added Gupta.

At a time of express technology-led innovation, product managers should focus on offering attractive features at low prices every bit chop-chop as possible. Past offering better value for coin, they can increase demand for smartphones, Gartner said.

Source: https://beebom.com/global-smartphone-market-shrinks-q3-weak-demand/

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