Global Smartphone Shipments Fell 9% in 4Q17, iPhone Down Just 1% [Report]

Global Smartphone Shipments Fell 9% in 4Q17, iPhone Down Just 1% [Report]

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Despite a global drop in smartphone shipments of 9%, Apple shipped just 1% fewer iPhones in 4Q17 than the year ago quarter, reports Strategy Analytics. The global smartphone market contraction was the biggest annual fall in history. Apple managed to capture 19% of the market, edging out Samsung. Xiaomi almost doubled its smartphone shipments from a year ago.

Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments declined 9 percent annually from 438.7 million units in Q4 2016 to 400.2 million in Q4 2017. It was the biggest annual fall in smartphone history. The shrinkage in global smartphone shipments was caused by a collapse in the huge China market, where demand fell 16 percent annually due to longer replacement rates, fewer operator subsidies and a general lack of wow models. However, on a full-year basis, global smartphone shipments grew 1 percent and topped an impressive 1.5 billion units for the first time ever.”

Neil Mawston, Executive Director at Strategy Analytics, added, “Apple shipped 77.3 million smartphones worldwide in Q4 2017, slipping 1 percent annually from 78.3 million in Q4 2016. Despite robust iPhone X demand and an iPhone average selling price approaching an incredible US$800, we note global iPhone volumes have actually declined on an annual basis for 5 of the past 8 quarters. If Apple wants to expand shipment volumes in the future, it will need to launch a new wave of cheaper iPhones and start to push down, not up, the pricing curve. Samsung dipped 4 percent annually and shipped 74.4 million smartphones for 19 percent marketshare worldwide in Q4 2017, up slightly from 18 percent share a year ago. Samsung is under pressure from Chinese rivals in some major markets, like China and India, but it remains by far the largest smartphone brand on a global basis, shipping an unmatched 317.5 million units in full-year 2017.”

Woody Oh, Director at Strategy Analytics, added, “Huawei maintained third position with 10 percent global smartphone marketshare in Q4 2017, holding steady from the same level a year ago. Huawei is performing well across Asia and Europe, but it is struggling to crack the valuable US market due to limited distribution channels. Huawei’s goal to be the world’s number one or two smartphone vendor is unlikely to happen if it cannot make headway in the United States.”

Linda Sui, Director at Strategy Analytics, added, “OPPO shipped 29.5 million smartphones during Q4 2017, unmoved from 29.5 million units in Q4 2016. OPPO was growing smartphone shipments at a 99 percent annual rate a year ago, but its growth has now dropped to zero. The golden age for OPPO is coming to an end and it is facing serious competition from Xiaomi and others. Xiaomi soared 87 percent annually, taking fifth place with 27.8 million shipments, more than doubling its global smartphone marketshare to 7 percent in Q4 2017, up from 3 percent a year ago. Xiaomi’s range of Android models, such as the Redmi Note 4, is proving wildly popular in India, snatching volumes from competitors such as Lenovo and Reliance Jio. Xiaomi is outgrowing almost everyone for now, but we expect its breakneck speed to slow this year, as rivals such as Huawei fight back with improved or cheaper new designs.”

Apple reported earnings yesterday with quarterly revenue of $88.3 billion, an increase of 13 percent from the year-ago quarter. Apple sold 77.316 million iPhones, 13.17 million iPads, and 5.112 million Macs. iPhone sales were down 1% from the year ago quarter and Mac sales were down 5%. Analysts were expecting Apple to sell about 80 million iPhones.

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Global Smartphone Shipments Fell 9% in 4Q17, iPhone Down Just 1% [Report]

DavidJek - February 4, 2018 at 2:00pm
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