Sales slowdown to hurt prospects for smartphone firms

Updated 2018-02-06 15:14:06 China Daily

Global sales of smartphones declined in the fourth quarter of 2017 due in part to lagging demand in China, according to two consulting companies.

Citing preliminary data, International Data Corporation (IDC) said on Thursday that smartphone vendors shipped 403.5 million units during the fourth quarter of 2017, a 6.3 percent decline compared to the 430.7 million units from the final quarter of 2016.

Strategy Analytics said on Thursday that global smartphone shipments tumbled 9 percent to 400.2 million units in last year's fourth quarter, down from 438.7 million in the fourth quarter of 2016, the biggest annual decline in history, according to Strategy Analytics.

Framingham, Massachusetts-based IDC said some markets such as China and the U.S. both witnessed a decline during the quarter as consumers appeared to be in no rush to upgrade to the newest generation of higher-priced flagship devices.

Strategy Analytics said the decline was led by what it called a decline in the Chinese market.

"China's smartphone market is declining because consumers are holding on to their phones for longer, operators like China Mobile have reduced their smartphone subsidies, and device makers such as Huawei have launched fewer 'wow' models to tempt shoppers back into retail stores. Some consumers are finding their smartphones 'good enough' and are pausing on upgrading," Neil Mawston, executive director at Boston-based Strategy Analytics, said in an email.

China's Xiaomi continued its rise, almost doubling smartphone shipments from a year ago, according to the Strategy Analytics report.

"Xiaomi is soaring fastest in India and China. Xiaomi has improved its Android smartphone designs and massively increased its retail presence online and in stores across those countries. Better phones plus more shelf-share mean higher sales," Mawston said.

Apple captured first place with 19 percent global market share, nudging Samsung into second position. Woody Oh, a director at Strategy Analytics, said China's Huawei Technologies Co maintained its third position with a 10 percent global smartphone market share, 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 U.S. 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," Oh said in a statement.

News reports have said Verizon Communications Inc and AT&T Corp, the two largest wireless carriers in the U.S., have ended plans to sell Huawei phones, reportedly under pressure from the U.S. government over security concerns.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 15 2018 19:13:54

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 15 2018 19:13:54

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 15 2018 19:13:54

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords