The demand for smartphones in the 3rd quarter of 2017 reached a record value
Global demand for smartphones in 3Q 2017 reached 367 million units, 3% more than in 2016. This is the highest demand in Q3, the observed GfK. A record number was reached, thanks to increased demand in Latin America (11% compared to the previous year) and in Central and Eastern Europe (9% compared to the previous year).
Arndt Polifke, global Director of telecommunications research at GfK, said that although smartphone sales in some regions have fallen, the increase in the average price of mobile devices is good news for producers, especially in regions such as Western Europe, where market saturation has led to a reduction in sales.
The industry has turned its attention to the higher prices, and top global brands such as Apple, Google, HTC, Huawei, LG, Moto, Nokia, Samsung and Sony, trying to attract customers to its flagship devices. Premium features are becoming more important to consumers, so in GfK expect more attention to the protection against water and dust, battery power, memory, high definition audio and video capabilities of the cameras, frameless design, and even biometric sensors.
Western Europe: revenue growth, despite market saturation
In Western Europe the total number of smartphones sold fell. This is due to the saturation of the market and delay the launch of the iPhone X. However, the revenue of producers increases. In the region there is a clear trend of transition to the top of the device: in the third quarter of every eight smartphone cost above $900, and in 2016, only every sixteenth.
Central and Eastern Europe: revenue growth of 26%
The demand for smartphones in Central and Eastern Europe continues to recover, primarily thanks to Russia and the Ukraine, where in comparison with last year the number of sales rose 10% and 19% respectively. Here also we observe a transition on the premium model.
In North America in Q3 2017, a slight drop, but GfK is making a positive forecast for the whole year.
In Latin America demand is growing at the expense of Brazil, where in comparison with the previous year there has been a 17% growth.
In the middle East one of the growth drivers was the recovery in sales in Egypt, where in July 2017, the demand began to grow for the first time after November 2016. It is also influenced by the countries of the region in which the prevalence of smartphones is still small.
In China, not only growing demand for smartphones, but their average price tag.
In developed countries, Asia is on the contrary the demand is falling, particularly in South Korea.
In Emerging Asia predict the greatest increase of sales by the end of 2017. Demand is growing in India (3%), Indonesia (5%), Malaysia (25%) and Bangladesh (22%).
As you can see, the smartphone market is heterogeneous, in different regions there are different scenarios of its development.