Story image

Gartner - Xiaomi up and Samsung down as smartphone market grows

30 May 2018

Global sales of smartphones to end users returned to growth in the first quarter of 2018 with a 1.3% increase over the same period in 2017, and Xiaomi coming out on top with 124% YoY growth.

"Demand for premium and high-end smartphones continued to suffer due to marginal incremental benefits during upgrade," says Gartner research director Anshul Gupta.

"Demand for entry-level smartphones (sub-$100) and low mid-tier smartphones (sub-$150) improved due to better-quality models."

Continued weakness in Greater China's mobile phone market also limited growth potential for the top global brands, including Chinese brands such as OPPO and Vivo, with over 70% of their sales coming from Greater China.

Xiaomi was the clear winner of the first quarter, achieving a growth of 124% year on year.

Xiaomi's refreshed portfolio of smartphones and aggressive pricing strategy helped it hold the No. 4 spot in the first quarter of 2018.

"This strategy led Xiaomi to achieve 330%  growth in the Emerging Asia/Pacific region," says Gupta.

Samsung's mid-tier smartphones faced continued competition from Chinese brands, which led to unit sales contraction year on year.

This is despite the earlier launch of its flagship Galaxy S9/S9+ compared to the S8/S8+ in 2017, and despite the Note 8 having a positive impact on Samsung sales in the first quarter of 2018.

Samsung's smartphone growth rate will remain under pressure through 2018, with Chinese brand's growing dominance and expansion into Europe and Latin America markets.

Samsung is challenged to raise the average selling price (ASP) of its smartphones while facing increasing competition from Chinese brands that are taking more market share.

Apple's smartphone unit sales returned to growth in the first quarter of 2018, with an increase of 4% year on year.

"Even though demand for Apple's iPhone X exceeded that of iPhone 8 and iPhone 8 Plus, the vendor struggled to drive significant smartphone replacements, which led to slower-than-expected growth in the first quarter of 2018," says Gupta.

"With its exclusive focus on premium smartphones, Apple needs to significantly raise the overall experience of its next-generation iPhones to trigger replacements and lead to solid growth in the near future."

Huawei's refreshed smartphone portfolio helped strengthen its No. 3 global smartphone vendor position.

"Achieving 18.3% growth in the first quarter of 2018 helped Huawei close the gap with Apple," says Gupta.

"However, its future growth increasingly depends on the vendor ramping up share in Emerging Asia/Pacific and resolving issues in the U.S. market, through the development of a stronger consumer brand. Huawei's attempt to grow its premium smartphone portfolio with its recent launches of the P20, P20 Pro and Honor 10 helps raise its competitiveness and growth potential.”

Bitglass appoints new cloud, business development leaders
The cloud security company has appointed vice presidents for worldwide channels and worldwide business development.
Ping Identity offerings accelerates cloud MFA and SSO adoption
90% of respondents trust MFA as an effective security control to protect identity data in public clouds, yet only 60% of organisations have formally adopted it.
Cloud innovation driving NZ IT services market, says IDC
Managed services makes up the largest portion of total IT services revenue. However, the project-oriented market achieved the highest YoY growth.
Ingram launches CRM backup on cloud marketplace
AvePoint Cloud Backup for Dynamics 365 is a multi-tenant solution, designed with specific features to enable channel partners and MSPs.
Trend Micro introduces cloud and container workload security offering
Container security capabilities added to Trend Micro Deep Security have elevated protection across the DevOps lifecycle and runtime stack.
Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.
Veeam enables secondary storage solutions with technology partner program
Veeam has worked with its strategic technology alliance partners to provide flexible deployment options for customers that have continually led to tighter levels of integration.
Veeam Availability Orchestrator update aims to democratise DR
The ability to automatically test, document and reliably recover entire sites, as well as individual workloads from backups in a completely orchestrated way lowers the total cost of ownership (TCO) of DR.