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Worldwide smartphone sales: Apple sees decline, Huawei grows fastest

Glworld wideobal sales of smartphones totaled 403 million units in the fourth quarter of 2015, a 9.7% increase over the same period in 2014, according to research agency Gartner. However, this was their slowest growth rate since 2008. In 2015 as a whole, smartphone sales reached 1.4 billion units, an increase of 14.4% from 2014.
In the fourth quarter of 2015, Samsung and Huawei were the only two top-five smartphone vendors to increase their sales to end users. Apple suffered its first decline in sales of smartphones — iPhone sales were down 4.4%.
Although Samsung was the No.1 vendor, Gartner analysts said the company faces challenges. “For Samsung to stop falling sales of premium smartphones, it needs to introduce new flagship smartphones that can compete with iPhones and stop the churn to iOS devices,” said Gupta.
With an increase in sales of 53% in the fourth quarter of 2015, Huawei achieved the best performance year over year. Huawei’s increased brand visibility overseas, and its decision to sell almost only smartphones, gave it a higher average selling price in 2015.
For total sales of smartphones in 2015, Samsung maintained the No. 1 position, but its market share declined by 2.2 percentage points. In 2015, Apple sold 225.9 million iPhones, to achieve a market share of almost 16%. Huawei’s smartphone sales approached 104 million units, up 53% year over year.
“Low-cost smartphones in emerging markets, and strong demand for premium smartphones, continued to be the driving factors,” said Anshul Gupta, research director at Gartner. “An aggressive pricing from local and Chinese brands in the midrange and entry-level segments of emerging markets led to consumers upgrading more quickly to affordable smartphones.”
Gupta said that 85% of users in the emerging Asia-Pacific market are replacing their current futureable midrange phone with the same category of phone. In addition, currency devaluations against the US dollar in many emerging markets are putting further margin pressure on many vendors that import devices.
Current market conditions are prompting some vendors to consider setting up manufacturing operations in India and Indonesia to avoid being hit by unfavorable currency devaluations and high import taxes.

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