Device

Gartner Says Global Smartphone Sales Continued to Decline in Second Quarter of 2019

Updated:2019/8/28 14:26

Samsung Smartphone Sales Grew After Six Consecutive Quarterly Declines

Global sales of smartphones to end users declined 1.7% in the second quarter of 2019, totaling 368 million units, according to Gartner, Inc.

“Demand for high-end smartphones has slowed at a greater rate than demand for midrange and low-end smartphones,” said Anshul Gupta, senior research director at Gartner. “To try to boost smartphone replacements, we’ve seen manufacturers bringing premium features such as multilens front/back cameras, bezel-less displays and large batteries from their flagship smartphones into lower-priced models.”

Among the top five global smartphone vendors, Huawei and Samsung exhibited the strongest annual sales increases in the second quarter of 2019 at 16.5% and 3.8%, respectively (see Table 1). “As a result, they both grew market share in the quarter, which led them to account for more than a third of total smartphone sales globally,” said Mr. Gupta.

The Huawei ban announcement led to a sharp decline in Huawei’s smartphone sales in the global market in the second quarter of 2019, although sales did improve slightly on the ban’s deferment. While its smartphone sales total was weaker globally, strong promotion and brand positioning helped Huawei sell a record number of smartphones in Greater China in the quarter, growing 31% in the region.

Table 1 Worldwide Smartphone Sales to End Users by Vendor in 2Q19 (Thousands of Units)

Vendor
2Q19
Units
2Q19 Market Share (%)
2Q18
Units
2Q18 Market Share (%)
Samsung
75,111.8
20.4
72,336.4
19.3
Huawei
58,055.7
15.8
49,846.5
13.3
38,522.9
10.5
44,715.1
11.9
Xiaomi
33,191.5
9.0
32,825.5
8.8
OPPO
28,112.2
7.6
28,511.1
7.6
Others
134,913.9
36.7
146,096.1
39.0
Total
367,908.1
100.0
374,330.6
100.0

Due to rounding, numbers may not add up precisely to the totals shown

Source: Gartner (August 2019)

Samsung Returned to Growth, Apple Continued to Decline

Samsung sold over 75 million smartphones in the second quarter of 2019 and grew its share by 1.1 percentage points year over year. “Strong demand for Samsung’s new Galaxy A series smartphones and the revamp of its entire entry-level and midrange smartphone range helped this positive performance,” said Mr. Gupta. “Demand for Samsung’s flagship Galaxy S10 started to weaken during the quarter, however, indicating that achieving growth in 2019 as a whole will be a challenge.”

Sales of iPhones continued to decline year over year, although at a lesser rate compared with the first quarter of 2019. Apple sold just over 38 million iPhones in the second quarter, a 13.8% decline year over year. “Too few incremental benefits are preventing existing iPhone users from replacing their smartphones,” said Mr. Gupta.” Apple has reached an inflection point marked by shifting its business toward services, which represented 21% of the vendor’s total revenue in the first quarter of 2019.”

China and Brazil: Only Countries in the Top 5 to Show Smartphone Sales Growth

Among the top five countries in smartphones sales, China held the No. 1 position with 101 million smartphone sales in the second quarter, up 0.5% year over year. With more 5G smartphone models available in the second quarter, vendors in China had to clear out inventory of 4G high-end smartphone models. “Vendors are pushing hard on both prices and features to deal with sluggish sales in past quarters. This includes major brands are more aggressively promoting sub-brands to stimulate spending of cost-conscious consumers. Also, with more 5G models coming in 2H19, vendors are in the pressure to clear out inventory of 4G premium models.” said CK Lu, senior director analyst at Gartner.

Table 2 China Smartphone Sales to End Users by Vendor in 2Q19 (Thousands of Units)

Vendor
2Q19 Units
2Q19 Market Share (%)
Huawei
35,191
35%
OPPO
17,266
17%
Vivo
16,743
17%
Xiaomi
12,909
13%
Apple
7,263
7%
Other Phone Vendors
11,674
12%
Grand Total
101,046.800
 

Due to rounding, numbers may not add up precisely to the totals shown

Source: Gartner (August 2019)

Achieving 10.8 million smartphone sales in the same period, Brazil was the only other country in the top five to exhibit growth (1.3% year over year). As the economy in Brazil is starting to slowly recover, this smartphone growth is a small indicator of stronger economic growth expected in 2020.

India sold a total of 35.7 million smartphones, achieving market share of 9.7% in the second quarter of 2019. Those sales in India represented a 2.3% decline year over year, however, mainly due to slowing consumer upgrades from feature phones to smartphones.

Global smartphone sales will remain weak for the rest of the year. Gartner analysts expect that sales of worldwide smartphone sales to end users will total 1.5 billion units in 2019.

 Source:C114
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