File Image: Xiaomi founder Lei Jun discloses price tags for new smartphones during a product launch in Shenzhen.

CAPE TOWN - Global sales of smartphones have seen an increase in the first quarter of 2018 with a 1.3% of growth over the same period of 2017, according to research and advisory firm, Gartner.

"Compared to the first quarter of 2017 sales of total mobile phones stalled and reached 455 million units in the first quarter of 2018", Gartner said in a statement. 

"Nearly 384 million smartphones were sold in the first quarter of 2018, representing 84% of total mobile phones sold", said Gartner. 

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

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

Since 2017, popular brands such as Samsung has seen slow growth and Apple's market price has seen an increase. Samsung's mid-tier smartphones faced continued competition from Chinese brands, which led to unit sales contraction year on year. 

Samsung

"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", said Gartner. 

According to the report, Gartner predicts that 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", said Gartner. 

Apple 

Gartner explains that the delay in sale boosts for Apple from last quarter materialised. 

According to the report, 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," said Mr. 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 and Xiaomi 

The report shows that Huawei's new smartphone portfolio was the reason it was able to strengthen its No. 3 global smartphone vendor position.

"Achieving 18.3 percent growth in the first quarter of 2018 helped Huawei close the gap with Apple," said Mr. 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.”

Xiaomi achieved 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 percent growth in the Emerging Asia/Pacific region," said Mr. Gupta.

Worldwide Smartphone Sales to End Users by Vendor in 1Q18 (Thousands of Units)
Vendor 1Q18 Units
1Q18 Market Share (%)
1Q17 Units
1Q17 Market Share (%)
Samsung 78,564.8
  
20.5
  
78,776.2
  
20.8

Apple 54,058.9 14.1 51,992.5 13.7
Huawei 40,426.7 10.5 34,181.2 9.0
Xiaomi 28,498.2 7.4 12,707.3 3.4
OPPO 28,173.1 7.3 30,922.3 8.2
Others 153,782.1 40.1 169,921.1 44.9
Total 383,503.9
100.0 378,500.6 100.0
Source: Gartner (May 2018)

Operating Systems 

In the smartphone operating system (OS) market, The report shows that Google's Android and Apple's iOS achieved growth in units in the first quarter of 2018.

Worldwide Smartphone Sales to End Users by Operating System in 1Q18 (Thousands of Units)
Operating System
1Q18 Units
1Q18 Market Share (%)
1Q17 Units
1Q17 Market Share (%)
Android 329,313.9 85.9 325,900.9 86.1
iOS 54,058.9 14.1 51,992.5 13.7
Other OS 131.1 0.0 607.3 0.2
Total 383,503.09 100.0 378,500.6 100.0

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- BUSINESS REPORT ONLINE