Moscow, February 22 — “Lead. Economics” Samsung and Apple are increasingly losing its share in the smartphone market under pressure from Huawei, as consumers are deterred by high prices inherent in their premium models, according to a new study by Gartner.
The largest producer is Samsung with a share of 17.3%. The Koreans sold 70,8 million smartphones for a specified period. In second place is Apple, which controls 15.8 percent of the global market. Huawei took third place, behind by just 1% (of 14.8%). The top five also includes OPPO and Xiaomi with a score of respectively 7.7% and 6.8%.
Apple retained the second place in market share, but recorded the greatest decline in demand for mobile devices from 17.9% to 15.8%. In the fourth quarter of 2018, the company sold 4.5 million iPhone. This is 8.5 million less than in the same period in 2017.
Gartner sees two reasons for the decline in demand for smartphones Apple: demand for iPhone in China and the interest of users to older models.
Bernstein analyst Toni Sacconaghi spoke earlier on this subject, stating that, for example, iPhone owners have long to use them. Over the past year, the average holding period of iPhone has increased to four years. The expert believes that Apple itself has set itself the bandwagon by starting a massive program to replace batteries of iPhone at a reduced price. Thus, it has breathed new life into used smartphones, after which those who thought about an upgrade, decided to keep a smartphone for some time.
Expert Gartner noted that the line of Apple iPhone and Samsung Galaxy receive only a “gradual and minor improvements” in each refresh cycle of devices. They cost about $1000 so consumers prefer cheaper devices with comparable characteristics offered by Huawei and other Chinese brands. Anshul Gupta adds that more and more people are also “proud” to use a Chinese smartphone manufacturer and Apple products and Samsung.
New Samsung phones are too expensive — Galaxy S10e entry level costs $749, which can attract more buyers with a limited budget, but the Galaxy S10 costs $899, but the price tag on the Galaxy S10+ starts at $999. And that’s the basic configuration. If you choose a model with increased RAM or disk storage, the price will of course be even higher.
People used to stand in multikilometer queues for new phones because gadgets have been radically improved camera, more clear screens and high speed data transfer — all of these features are fundamental for a modern smartphone. But now there is a slowdown in this kind of innovation. CNBC notes that often people just want a smartphone running a little longer.
Samsung has presented phones with brighter displays, fingerprint scanners that are hiding under the screen, and a function that allows you to charge wireless headphones, placing them on the back of the phone. This is nice stuff, but why would someone with a Galaxy S8, where a good display and facial recognition, will want to spend another $850 or $999 to get all the same, but slightly better?
Tim cook in his letter to investors called the fall of the Chinese market as one of the reasons of revision of forecast of Apple. Apple reported a decrease in deliveries in China in the fourth quarter of 19.9%, but was able to stay in the top five in sales of mobile gadgets in the country. Xiaomi has shown the worst results, showing a decline of shipments by 34.9% compared to the same period a year ago. Total shipments in China fell 9.7 percent to 103 million units.
“Apple is really losing ground on several fronts, especially when it comes to emerging markets such as China, reported CNBC senior Director, research Gartner Anshul Gupta. — In China, as we have seen, leading local players have significantly improved the quality of their smartphones… In flagship smartphones Huawei, Oppo or Vivo to meet the same function as the flagships of Samsung and Apple, but the first are significantly cheaper.”
Analysts say the stagnation of global smartphone sales in the final quarter of 2018, end users around the world have purchased 408,4 million devices, which is only 0.1% more than in the same three months of 2017.
“The demand for smartphones primary and middle price segment remained high in all markets, but sales of high-end devices in the fourth quarter of 2018 continued to slow,” — commented on these Anshul Gupta. According to experts, decrease in rates of innovation in the premium category, along with rising prices have forced users to postpone the purchase of expensive equipment that actually led to the zero growth of the market in the last quarter.
The demand for the iPhone weakened in most regions, except North America and Mature markets in the Asia-Pacific region. The most severe drawdown was observed in China, where Apple’s market share fell to 8.8% from 14.6% in October-December 2017. According to the results of last year, iPhone sales fell by 2.7% and amounted to little more than 209 million units, according to Gartner.
Samsung flagship model such as Galaxy S9, S9+ and Note9, also failed to spur demand for smartphones, the South Korean vendor. In addition, the average price category, Samsung has continued to push Chinese brands Xiaomi and Huawei. In the result the quarterly sales of Samsung fell by 4.4%, to 70,78 million vehicles. Due to the weakening demand in China, Western Europe and Latin America by the end of 2018, Samsung recorded a decline in smartphone sales by 8.2%, to 295 million units.
Analysts say 2018, the company Huawei. In the final quarter, the company sold more than 60 million smartphones, improving the result of the previous year by 37.6%, which allowed it to become the fastest growing smartphone manufacturer among the brands of the top 5. Positive dynamics at Huawei persisted throughout the year, which enabled it to narrow the gap with Apple. Annual sales of smartphones Huawei accounted for nearly 203 million vehicles.
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