Global sales of smartphones to end users continued to decline in the third quarter of 2019, contracting by 0.4% compared with the third quarter of 2018, according to Gartner, Inc.. Demand remained weak as consumers became more concerned about getting value for money, the research group adds.
“For the majority of smartphone users, desire has shifted away from owning the least expensive smartphone. Today’s smartphone user is opting for midtier smartphones over premium-tier ones because they offer better value for money,” saiys Anshul Gupta, senior research director at Gartner. “In addition, while waiting for 5G network coverage to increase to more countries, smartphone users are delaying their purchase decisions until 2020.”
This shift has led brands such as Samsung, Huawei, Xiaomi, OPPO and Vivo to strengthen their entry-level and mid-tier portfolios. This strategy helped Huawei, Samsung and OPPO grow in the third quarter of 2019.
By contrast, Apple recorded another double-digit decline in sales, year over year, according to Gartner. The tech giant sold 40.8 million iPhones, a year-over-year decline of 10.7%.
“Although Apple continued its sales promotions and discounts in various markets, this was not enough to stimulate demand globally,” says Gupta. “In the Greater China market sales of iPhones continued to improve, however, it follows a double-digit decline recorded at the beginning of the year. The iPhone 11, 11 Pro and 11 Pro Max saw good initial adoption, which suggests that sales may be positive in the remaining quarter.”
