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Smartphone Sales Decline Globally For First Time Ever

Smartphone Sales Decline Globally For First Time Ever

Smartphones sales have declined for the first time year-on-year worldwide since 2004.

"Future growth opportunities for Huawei will reside in winning market share in emerging APAC and the US", said Anshul Gupta, research director at Gartner.

Samsung's profit and average selling price could improve if its next flagship phones, the successors to its Galaxy series which are expected to launch this year, are successful.

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.

The South Korean tech giant experienced a year-on-year decline of 3.6 percent, while rival Apple also felt a downturn in iPhone sales of roughly five percent.

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.

"While demand for high quality, 4G connectivity and better camera features remained strong, high expectations and few incremental benefits during replacement weakened smartphone sales", Gupta said. First, the later availability of the iPhone X led to slow upgrades to iPhone 8 and 8 Plus, as users waited to try the more expensive model.

"We expect good demand for the iPhone X to likely bring a delayed sales boost for Apple in the first quarter of 2018".

Huawei and Xiaomi were the only vendors to see growth in their smartphone ranges, with sales up 7.6 percent to 43.9 million and up 79 percent to 28.2 million respectively.

Coming back to the smartphones sales, on a year on year basis as per Gartner, the overall smartphones sales passed 1.5 billion units in 2017 which is 2.7% increase from 2016.

"Future growth opportunities for Huawei will reside in winning market share in emerging APAC and the USA", said Gupta, "Xiaomi's biggest market outside China is India, where it will continue to see high growth". With 17.9% market share, Apple ranks second in the global smartphone sales in the December quarter.

A decade of growth now means most people have access to a smartphone or tablet device, but the latest research will be worrying for the telecoms industry, which has experienced falling sales in China, the world's biggest smartphone market.

In Australia brands such as Huawei and Sony are struggling to get traction while brands such as Alcatel, Apple, Samsung and Nokia are experiencing growth.

In the smartphone operating system market, Google's Android extended its lead by capturing 86% of the total market in 2017, up 1.1 percentage points from a year ago.

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