Emerging Asia leads global smartphone sales growth

Global smartphone demand increased 4% year-on-year during the second quarter to 347 million units, marking the strongest second quarter on record, according to GfK.

Emerging Asia led the demand growth with a 13% year-on-year increase, followed by Central and Eastern Europe at 11% and Latin America at 10%, the market research company said. Market value grew 9% year-on-year, due to rising average sales price.

“The record demand for smartphones in the second quarter this year shows that, despite saturation in some markets, the desire to own a smartphone is a worldwide phenomenon,” GfK global director of telecom research Arndt Polifke said.

“How that manifests itself differs widely by region. Manufacturers are maximizing all their creativity to ensure their latest devices are irresistible – and to increase ASP as a result. Elsewhere, macroeconomic factors and consumer confidence are having an impact, but operators and retailers are employing localized tactics to ensure the smartphone remains the connected device of choice.”

Yotaro Noguchi, product lead in GfK’s trends and forecasting division, added that “consumers are willing to pay more for their smartphone as they seek a better user experience. Despite the market reaching high penetration levels, GfK forecasts smartphone demand will continue to see year-on-year growth even in 2018, as innovation from smartphone vendors keeps replacement cycles from lengthening.”

Mainland China: The market plateaus

In mainland China, smartphone demand plateaued in 2Q17 at 110.1 million units, showing no change year-on-year. This moderation of growth in demand for smartphones was caused primarily by saturation in the market.

But as in other regions, higher-priced new products are pushing up market value. GfK forecasts smartphone demand in mainland China to total 461 million units in 2017, an increase of 2% year-on-year. The growth in value terms (USD) is expected to be considerably higher, at 11% year-on-year.