Worldwide Smartphone Sales Grew 3.9% in 1st Qtr 2016

Global sales of smartphones to end users totaled 349 million units in the first quarter of 2016, a 3.9 percent increase over the same period in 2015, according to Gartner.

Smartphone sales represented 78 percent of total mobile phone sales in the first quarter of 2016.

Smartphone sales were driven by demand for low-cost smartphones in emerging markets and for affordable 4G smartphones, led by 4G connectivity promotion plans from communications service providers (CSPs) in many markets worldwide.

“In a slowing smartphone market where large vendors are experiencing growth saturation, emerging brands are disrupting existing brands’ long-standing business models to increase their share,” said Anshul Gupta, Research Director at Gartner.

“With such changing smartphone market dynamics, Chinese brands are emerging as the new top global brands. Two Chinese brands ranked within the top five worldwide smartphone vendors in the first quarter of 2015, and represented 11 percent of the market. In the first quarter of 2016, there were three Chinese brands – Huawei, Oppo and Xiaomi – and they achieved 17 percent of the market.”

Oppo had the best performance in the quarter, moving into the No. 4 position with unit sales growth of 145 percent. Like Huawei and Xiaomi, Oppo saw strong growth in China, taking share from players such as Lenovo, Samsung and Yulong. Huawei saw strong smartphone demand in Europe, the Americas and Africa, while Xiaomi and Oppo saw their smartphone sales in emerging Asia/Pacific rise by 20 percent and 199 percent, respectively.

In the first quarter of 2016, Samsung extended its lead over Apple with 23 percent market share. “Samsung’s Galaxy S7 series phones and renewed portfolio positioned it as a strong competitor in the smartphone market, and more so in the emerging markets where it has been facing fierce competition from local manufacturers,” said Gupta.

Apple had its first double-digit decline year on year, with iPhone sales down 14 percent. Apple’s “upgrade program” in the U.S. has helped sweeten its flagship iPhone 6s and 6s plus model pricing to drive sales in its largest smartphone market. Apple is also exploring ways to refarm second-hand iPhones coming through the program in emerging markets.

Lenovo disappeared from the top five smartphone vendor ranking as well as the top 10 mobile phone vendor market in the first quarter of 2016. “Lenovo had another challenging quarter with its worldwide smartphone sales declining 33 percent,” said Gupta.

“Its smartphone sales fell by 75 percent in Greater China, where it faced strong competition from local brands. Lenovo is also struggling to bring synergies with Motorola’s device business, managing lower costs and overheads of the two brands.”

In terms of the smartphone operating system (OS) market, Android regained share over iOS and Windows to achieve 84 percent share.

Hot this week

CIIN Boss, Yetunde llori, Bows Out, Lists Achievements in Office

Mrs. Yetunde llori, the President/Chairman of Council, Chartered Insurance...

WorldStage Business Forum Q2 2026: Prof. Baale Makes Case for Building World-class Nigerian Corporate Culture

L-R: Mr. Segun Adeleye, President/CEO, World Stage Limited; Prof. Lere...

Insurance Brokers Reaffirm Commitment to Local Content, Digital Innovation at SUPERNEWS Conference

Deputy President of the Nigerian Council of Registered Insurance...

Regency Alliance Insurance Launches N7bn Private Placement

Regency Alliance Insurance Plc has officially launched a private...

Topics

Zenith Bank Marks Successful Public Offer, Achievement of Recapitalisation at NGX

Zenith Bank Plc yesterday marked a significant milestone with...

Olam Wins Impact Award for Digital Platform that Empowers Smallholder Farmers

Olam has been recognised for making a difference in...

Red Star Boosts e-Commerce with Saddle Solution

A first of its kind industry solution to manage...

Absa: Expanding Role in Africa’s Post-Pandemic Recovery Race

The race to rebuild the global economy after the...

2bn People Without Bank Accounts: Leveraging Financial Technology for the Under-banked

More than two billion people worldwide are without bank...

Stanbic IBTC Bank PMI: Sharpest Rise in New Orders in 14 Months

The recovery in the Nigerian private sector gathered strength...

Linkage Assurance Women Seeks Greater Opportunities for More Relevance

L-R: Mrs. Temitope Abolaji, Marketer, Linkage Assurance Plc; Ms....

NCC: ‘No Correlation Between 5G & COVID-19’

    Prof. Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission In view of the...