Smartphones (Global Market)

Briefly and clearly

Mobile phone and smartphone sales leaders from 1992 to 2018 in animation below.

The unprecedented rise in smartphone sales has allowed many other industries to generate billions of dollars each year.

Smartphone multiplier includes products and services related to smartphone sales (cases, applications, chargers, content, cloud data storage...)

Markets of countries

• Smartphones (Russian market)
• Smartphones (European market)
• Smartphones (Kazakhstan market)
• Smartphones (China Market)
• Smartphones (Turkish market)
• Smartphones (EMEA Market)
• Smartphones (South Korea market)

Used and Recovered Smartphone Market

Main Article: Used and Recovered Smartphone Market

Foldable smartphones

Main article: Folding smartphones

Components

Chargers (Global Market)

Main article: Chargers (Global Market)

CMOS Sensors (Global Market)

Main Article: CMOS Sensors (Global Market)

CMOS - sensors that are the basis of cameras and digital cameras, including those installed in smartphones.

Smartphone Batteries (Global Market)

Main Article: Smartphone Batteries (Global Market)

Chronicle

2024: Samsung leads the smartphone market in Q1. Apple loses stake

2023

iPhone 14 is the most popular smartphone model in the world

At the end of 2023, Apple's iPhone 14 model became the most popular smartphone in the world. It accounted for 3.9% of the total market volume in unit terms, as stated in a study by Counterpoint Technology Market Research, the results of which were published on February 21, 2024.

It is noted that in 2023, approximately half of the total sales of the iPhone 14 fell on the United States and China. In addition, this device provided about 19% of the total number of iPhones (all models) sold during the specified year. In second place in the ranking of the most popular smartphones in 2023 is the iPhone 14 Pro Max with 2.8%, and the iPhone 14 Pro closes the top three with 2.4%. Next come four more variants of Apple devices - iPhone 13, iPhone 15 Pro Max, iPhone 15 Pro and iPhone 15: their shares are 2.2%, 1.7%, 1.4% and 1.4%, respectively.

Places from the eighth to the tenth occupy. smartphones Samsung This Galaxy is the A14 model 5G with 1.4%, which is highly popular in the USA and. India Then come the Galaxy A04e and Galaxy A14 4G with a result of about 1.3% each: they are in demand primarily in emerging markets, such as,, and. Brazil India Mexico Indonesia

Thus, the top ten best-selling smartphones in 2023 included exclusively Apple and Samsung devices. The combined market share of the Top 10 devices reached its highest level ever at 20%, up from 19% in 2022. Total sales of Apple models in 2023 remained practically unchanged on an annualized basis, partly due to significant demand for iPhones from consumers in emerging markets, including India, the Middle East and Africa. At the same time, promotions by telecom operators in Japan increased sales of iPhones of previous generations.^[1]

The leader in the global smartphone market has changed

In 2023, approximately 1.17 billion smartphones were sold globally. This is 3.2% less than the previous year, when shipments amounted to 1.21 billion units. Such data are given in the IDC study, the results of which were published on January 15, 2024.

Analysts note that at the end of 2023, the volume of the global smartphone market reached its lowest value in a decade. This is due to the difficult macroeconomic situation, high inflation rate and reduced purchasing power. Against this background, there have been major changes in the ranking of the five leading manufacturers.

For the first time in history, Apple took the first place in terms of annual smartphone sales. She took the palm from the South Korean company Samsung, which has been at the top of the podium since 2011. IDC experts attribute Apple's success to several factors. In particular, the popularity of premium devices is growing around the world: in 2023, their share in the total volume of supplies exceeded 20%. In addition, aggressive trade-in programs and interest-free lending offers contribute to the growth of iPhone sales.

In 2023, Apple was able to sell 234.6 million smartphones, taking 20.1% of the global market as a result. For comparison: a year earlier, these indicators were 226.3 million and 18.8%. On an annualized basis, iPhone demand climbed 3.7% despite the industry's overall contraction. Analysts also emphasize that among suppliers in the top three, only Apple was able to demonstrate positive dynamics.

Samsung at the end of 2023 is in second place with 226.6 million devices sold, which corresponds to 19.4% of the market. In 2022, the South Korean company shipped 262.2 million smartphones (21.7% in total): thus, sales for the year decreased by 13.6%. Xiaomi closes the top three with 145.9 million devices sold and 12.5%: this Chinese company's shipments decreased by 4.7% year-on-year.

The top five also included Chinese Oppo and Transsion with 103.1 million and 94.9 million smartphones sold, respectively. The shares of these companies amounted to 8.8% and 8.1%. Moreover, if Oppo's deliveries in relation to 2022 decreased by 9.9%, then Transsion's deliveries jumped by 30.8%. This is explained by the fact that Transsion devices (brands iTel Mobile, Tecno Mobile and Infinix Mobile) are popular in India - in one of the largest smartphone markets.

The general changes in the ranking of leaders once again emphasize the high level of competition in the smartphone market. Apple has certainly played a role in Samsung's slump, but overall the Android space is diversifying within itself. Huawei is returning and quickly strengthening its position in China. Brands such as OnePlus, Honor, Google and others are releasing very competitive devices at the bottom of the premium price segment, says Ryan Reith, vice president of IDC.

Analysts note that by the end of 2023, there were signs of recovery in the global smartphone market. Thus, in the fourth quarter, sales increased by 8.5% compared to the same period in 2022, amounting to 326.1 million units. IDC believes the industry expects significant changes. This is due, in particular, to the growing popularity of devices equipped with a flexible display. In addition, artificial intelligence technologies can contribute to the rearrangement of forces. In general, the global smartphone market as of the end of 2023 is experiencing difficulties, but at the same time there are improvements in the overall situation and a gradual recovery in demand.^[2]

Best-selling phone models

Reducing the number of smartphone brands

The number of smartphone brands in the world continues to decline.

Active Global Brands * * Smartphone brands that recorded sales in each calendar year
.

2022

Only 54% of the world's inhabitants have smartphones

As of the end of 2022, approximately 4.3 billion people around the world owned smartphones, or 54% of the world's inhabitants. Such data are reflected in the GSM Association (GSMA) study, the results of which are presented on October 11, 2023.

The report says that by the end of 2022, 4.6 billion people globally use mobile Internet access. Of these, a little less than 4 billion (49%) go online through smartphones. Another 600 million people (8% of the Earth's inhabitants) connect to the Internet using cell phones.

More than two-thirds (69%) of smartphone owners who work on the Internet are connected to 4G networks. Another 17% use high-speed 5G services. However, 69% of smartphones used to access mobile Internet in sub-Saharan Africa and 33% in the Middle East and North Africa continue to use 3G connectivity by the end of 2022. And this means that 3G networks remain an important means of data transmission for millions of people in low- and middle-income countries.

Only 25% of the population in the world's least developed countries use mobile internet - compared to 52% in low- and middle-income regions and 85% in high-income states. The study suggests that as of the end of 2022, approximately 95% of the world's population lives in the coverage zones of broadband mobile networks. And only 5% of residents (about 400 million people) do not have access to such services. Most of those who do not use mobile Internet live in areas within the coverage area of ​ ​ cellular networks. In all regions of the world, the average download speed through mobile is at least 10 Mbps, and the average global speed reaches 34 Mbps.^[3]

Top 10 best-selling smartphones in the world identified

At the end of 2022, various Apple iPhone models took eight out of ten positions in the ranking of the world's best-selling smartphones. This was announced on March 7, 2023 by the analytical company Counterpoint Technology Market Research.

As stated in the published report, the Apple iPhone 13 became the best-selling smartphone of 2022: it accounted for 28% of the total supply of all iPhone variants. According to the results of the study, the iPhone 13 in 2022 was the most popular device in key markets such as China, the USA, Great Britain, Germany and France. In addition, the iPhone 13 remained the leading smartphone for each month from the announcement in September 2021 to August 2022. Lower prices after the release of the iPhone 14 series further increased sales of the iPhone 13 in developing regions. It is estimated that the demand for the iPhone 13 was twice as high as the iPhone 13 Pro Max, which in 2022 became the second best-selling smartphone on a global scale.

Counterpoint emphasizes that for the first time in 2022, iPhone Pro Max variants were in higher demand than Pro versions and basic models of Apple devices. This, in particular, helped the iPhone 14 Pro Max take third place in the ranking of the most popular smartphones of 2022. This device became the best-selling device in September, October and November 2022. The most popular iPhone 14 Pro Max was among new buyers and those who switched to older iPhone modifications. Improvements in iPhone 14 Pro devices like the dynamic island and faster processor make them more attractive to consumers, since the base model is almost identical to the previous generation version.

In fourth place in the ranking is the Samsung Galaxy A13: this smartphone offers the optimal combination of characteristics and price (less than $250). The biggest contributors to the device's sales in 2022 were the Caribbean and Latin America (CALA), as well as India.

Places from the fifth to the ninth went to various iPhone models. So, after the Samsung Galaxy A13, the iPhone 13 Pro follows, and the iPhone 12 is in sixth position - the best-selling smartphone of 2021. iPhone 12 sales remained strong in the United States, Japan and China in 2022, Counterpoint reported. Lower prices for the next generations of Apple devices contributed to the continued demand for the iPhone 12; in addition, this device's support for 5G technology played an important role. The seventh and eighth lines in the ranking were occupied by the latest iPhone 14 and iPhone 14 Pro models, respectively. Next comes the iPhone SE: this device sold well in Japan in 2022.

Another Samsung smartphone closes the top ten - the budget LTE model Galaxy A03. This is the most affordable device in the list and the only device in the ranking made on the Unisoc platform. The smartphone has performed well in developing regions such as CALA, the Middle East and Africa (MEA).

We believe the Top 10 smartphone share will increase in 2023 as brands focus on eliminating inventory and optimising new product launches. We also expect companies to continue to reduce the range of devices to minimize cannibalisation. The number of models available on the global market has already decreased from more than 4,200 in 2021 to about 3,600 in 2022. At the same time, brands will focus on increasing the number of premium-level models to turn volumes into profits, Counterpoint said in a report.[4]

Only one smartphone maker from the top 10 has increased sales

On February 3, 2023, Omdia announced the results of a study of the global smartphone market. At the end of 2022, sales decreased significantly, and among the companies included in the top ten players, only one (Honor) managed to increase supplies.

During 2022, about 1.21 billion smart cellular devices were shipped globally. This is 9.9% less compared to 2021, when deliveries were estimated at 1.34 billion units. Honor became the only major OEM to post year-on-year growth. Chinese brands Xiaomi, Vivo and Oppo were most affected: demand for their devices collapsed due to restrictions in China related to the COVID-19 pandemic and disruption of component supply channels.

Many factors affect consumer demand for smartphones, but a high inflation rate is key, leading to a decrease in disposable income for potential buyers. The strong dollar exchange rate against other currencies reduces the profitability of OEMs and hinders advertising and marketing activities. As for production, high stocks and low demand lead to a constant reduction in product output. The market will take time to recover, and an increase in supplies is unlikely until at least the third quarter of 2023, said Jusy Hong, senior research manager at Omdia.

In 2022, Samsung became the largest supplier of smartphones with 259 million devices sold and a share of about 21%. Over the year, shipments of the South Korean manufacturer decreased by 4.8%. Apple is in second place with 231 million iPhones sold, equivalent to 19% of the market. Moreover, in the top ten, Apple showed the smallest reduction in deliveries - minus 1.3% compared to 2021. Xiaomi closes the top three, whose sales for the year fell by 20% - to 152 million units: the company occupied 13% of the global industry.

In fourth and fifth positions are the Chinese Oppo and Vivo with 107 million and 98 million shipped smartphones, respectively, and shares of 9% and 8%. For these companies, the drop in supplies compared to 2021 was recorded at 25.6% and 27.1%. The sixth place went to Transsion - 68 million devices and 6% of the market (deliveries decreased by 8.7%). The seventh position of the Honor brand, which was able to increase shipments by 47.2% - up to 59 million units: this allowed the company to occupy 5% of the global industry. The top ten also includes Realme, Motorola and Huawei, which sold 53 million, 47 million and 28 million devices, respectively, which is equivalent to 4%, 4% and 2% of the market. These brands recorded a drop in shipments by 9%, 1.4% and 19.7%. All other players jointly sold 104 million smartphones, occupying 9% of the industry.

Deliveries of Chinese OEMs have suffered for several reasons, including due to the recession of the local economy, as well as the blocking of large cities amid the COVID-19 pandemic. At the international level, high inflation reduces consumer disposable income, which negatively affects sales of brands from the PRC, which primarily focus on low and medium price ranges. Many Chinese suppliers also continue to struggle in the Indian smartphone market, which is the largest international sales region for a number of brands. The result of the reduction in consumer demand was a significant increase in inventory. Therefore, it is not surprising that OEMs are lowering their target for the supply of devices, "says Zaker Li, chief analyst at Omdia.[5]

The global smartphone market showed the strongest decline since 2013

On January 25, 2023, IDC released statistics on the global smartphone market. It is reported that in 2022 the industry showed the strongest decline in almost a decade - since 2013.

According to estimates, the volume of deliveries of smartphones on a global scale in 2022 amounted to approximately 1.21 billion units. For comparison: in 2021, shipments were 1.36 billion units. Thus, the market contracted by 11.3%. Analysts attribute such a sharp drop to a decrease in purchasing power, high inflation and economic uncertainty in general. The current situation casts doubt on the forecast for the recovery of the industry by 2.8% in 2023: most likely, experts will have to revise this estimate.

According to the results of the fourth quarter of 2022, smartphone shipments amounted to 300.3 million units, which is 18.3% less on an annualized basis. This is the strongest drop for one quarter in the history of IDC statistics collection.

We've never seen holiday quarter deliveries lower than the previous quarter. Weakening demand and large inventories have caused companies to cut production sharply. Intense sales and promotions during the quarter helped drain existing inventory rather than drive shipping growth. Manufacturers are becoming increasingly cautious in supply and planning, refocusing on profitability. This holiday quarter tells us that rising inflation and intensifying macroeconomic problems continue to hold back consumer spending more than expected and push back any possible market recovery to the end of 2023, says Nabila Popal, research director at IDC Group.

In 2022, Samsung became the leading supplier of smartphones on a global scale, selling 260.9 million devices, which corresponds to a share of 21.6%. At the same time, shipments of the South Korean manufacturer decreased by 4.1%. In second place is Apple with 226.4 million devices and 18.8% of the industry: on an annualized basis, deliveries fell 4%. Closes the top three Chinese Xiaomi - 153.1 million devices and 12.7%; compared to 2021, a reduction of 19.8% was recorded. In fourth and fifth places are two more companies from China - Oppo and Vivo with supplies of about 103.3 million units and 99 million units, respectively, and shares of 8.6% and 8.2%. Those brands saw shipments fall 22.7% and 22.8% year-on-year.

Thus, all players from the top five in 2022, without exception, faced a drop in demand, but Chinese companies suffered the most. This may be due to restrictions in the PRC due to the COVID-19 pandemic. All other participants in the global smartphone market in 2022 jointly shipped 362.7 million devices, receiving a total of 30.1%. Their supplies decreased by 9.1% compared to 2021.

We continue to see a decline in consumer demand as the timing of cellular renewal in most major markets has risen over the past 40 months (as of the end of 2022). Since in 2022 the decline amounted to more than 11%, 2023 will be a year of cautious decision-making among smartphone market participants. Suppliers will rethink their range of devices, and distribution channels will think twice before taking excess inventory. Nevertheless, there is a positive point: consumers can be offered even more generous device exchange schemes and profitable promotions. The market will have to think about new models of updating gadgets and increasing sales of smartphones, especially in the high-end segment, "said Anthony Scarsella, director of research at IDC.[6]

Smartphone sales in the world sank by 11%

On January 17, 2023, Canalys published the results of a study of the global smartphone market. The demand for these devices has significantly decreased against the background of high inflation and a difficult macroeconomic situation.

It is estimated that in the fourth quarter of 2022, global smartphone shipments decreased by 17% on an annualized basis, amounting to approximately 300 million units. The first place in the ranking of the largest suppliers was taken by Apple with a share of about 25% in the last quarter of 2022. Samsung is in second place with 20%, and Xiaomi closes the top three with a result of about 11%.

The fourth quarter of 2022 marks the worst annual momentum and weakest performance [for the last quarter of the year] in a decade. The market is extremely cautious about the formation of new inventory. The holiday sale season, reinforced by promotions, helped companies reduce the volume of existing devices. Demand for devices in the low and middle price segments fell rapidly during previous quarters, and in the last quarter of 2022, sales of expensive smartphones began to decline. The indicators in the fourth quarter of 2022 contrast sharply with the last quarter of 2021, when there was an increase in demand and a weakening of supply problems, "said Canalys expert Runar Bjorhovde (Runar Bjørhovde).

At the end of 2022, in general, the supply of smartphones on a global scale decreased by 11% compared to 2021 - to less than 1.2 billion units. The leader in sales was the South Korean company Samsung with a share of 22% against 20% in 2021. Apple is in second place: over the year, the company has strengthened its position from 17% to 19%. Xiaomi closes the top three with 13% against 14% in 2021. In addition, the top five included Chinese Oppo and Vivo with shares of about 9% each (in 2021 - 11% and 10%, respectively). All other suppliers together occupied 28% of the industry - the same as in 2021.

Analysts say market participants entered 2023 with caution, prioritizing profitability and staying in position. Companies are trying to cut costs in order to adapt to the new realities and the current economic situation. Building strong partnerships will go a long way in sustaining business in high inflation and reduced purchasing power.

Canalys predicts that global smartphone shipments will remain at 2022 or grow slightly in 2023. Conditions in the global market remain unfavorable, and therefore suppliers will continue to experience difficulties with increased sales. This will especially affect demand in developed regions with high saturation levels, in particular in North America and Western Europe.

While inflationary pressures will gradually ease, the effects of rising interest rates, slowing economic growth, and increasing labor market tensions will limit the potential of the smartphone industry. While easing restrictions in China will improve the situation in the consumer and commercial sectors, government stimulus initiatives are likely to have an effect only in six to nine months. Therefore, in the short term, demand in the PRC smartphone market will remain limited. On the other hand, some regions are likely to show growth in the second half of 2023. In particular, some economic recovery is expected in Southeast Asia, and the revival of tourism in China will help stimulate business activity, said Canalys analyst Le Xuan Chew[7]

Global used smartphone market adds 11.5%

On January 9, 2023, IDC presented the results of a study of the global market for used smartphones. In addition, analysts shared their vision for the further development of the industry.

It is estimated that 282.6 million second-hand smartphones were sold worldwide in 2022. These figures include machines restored in official salons and devices sold directly by former owners. For comparison: in 2021, the volume of the industry in unit terms amounted to 253.4 million. Thus, over the year, the industry showed an increase of about 11.5%. At the same time, North America accounted for 73.5 million units, or 26.0%, in total sales. In all other regions combined in 2022, 209.1 million previously used devices were sold (74%).

Exchange programs (Trade-In) continue to be the main driving force for the market of both used and new smartphones around the world. In 2022, new Trade-In initiatives were successfully launched in several regional markets, where trading under this scheme is still a new concept for local consumers. In addition, in mature markets such as the United States, Canada and Western Europe, exchange program trade continues to play an important role in accelerating device refresh cycles. This is facilitated by promotions held by telecommunications companies and retail network participants. Against the background of high demand for used smartphones, the average cost of gadgets during exchange (TIV) has increased: such a situation, as analysts note, is characteristic of periods when the demand for new devices is low. Moreover, the increase in TIV also provoked an increase in the cost of smartphones in the secondary market.

The increase in sales of more expensive models in the segment of new devices gave rise to a cyclical effect: in 2022, as a study by IDC showed, many of the exchange deals were related specifically to premium smartphones. At the same time, analysts say, it is not yet clear how long such aggressive Trade-In programs will last. The main problem is the relatively small profits that such initiatives bring.

The market of used smartphones was able to grow by 11.5% in 2022 due to the restoration of the segment of new cellular devices in 2021. Second-hand devices show higher resistance to market restraining factors compared to new smartphones, as the demand for such gadgets remains increased in many regions. Attractive prices are crucial for the growth of the segment of used devices, because consumers are forced to save. However, due to the increased cycles of updating mobile devices, the cost of used models in 2022 rose by more than 11%, "said Anthony Scarsella, research manager at IDC Worldwide Quarterly Mobile Phone Tracker.

In the coming years, according to IDC experts, the global market for former smartphones will continue to grow steadily. This is explained by the current macroeconomic situation and the high inflation rate. In 2026, according to forecasts, global sales of used devices will reach 413.3 million units. Thus, the CAGR (compound percentage CAGR) during this period will be 10.3%. In 2026, the North American market will account for 103.9 million (25.1%) of the total number of used smartphones sold, for all other regions - about 309.4 million (74.9%).^[8]

2021

The best-selling smartphones in the world

In 2021, the Samsung Galaxy A12 topped the list of the best-selling smartphones in the world, according to Omdia analysts, released in February 2022. In previous years, Apple products have led.

Since the release of the Galaxy A12 at the end of 2020, quarterly shipments of the device have exceeded 10 million units, except for the second quarter of 2021, when Samsung faced a manufacturing shortage of chips due to the re-spread of coronavirus (COVID-19) infection in India and Vietnam. On an annualized basis, the Galaxy A12 delivered 51.8 million units in 2021. This is the first indicator of Samsung to exceed 50 million in a year with one model, and the first place in terms of delivery among more than 1,000 smartphone models presented around the world.

Although the average sale price for Apple's iPhones in the top 10 is 5 times higher than the Galaxy A12, it is Samsung's most efficient model, shipping more than 50 million units a year. Apple's dominance in the premium market is growing stronger as consumer demand for such devices increased as the pandemic eased, said Omdia senior research manager Jusy Hong.

From 2nd to 4th places were taken by iPhone 12, 13 and 11, which in 2021 shipped a total of 41.7 million, 34.9 million and 33.6 million units, respectively. The fifth-ranked model is Xiaomi's Redmi 9A. The Chinese manufacturer delivered a total of 26.8 million Redmi 9A units, and the average sale price for this model was $78. This is 1/10 of Apple's iPhone models, which rank first in terms of shipments. iPhones took places again from 6th to 9th, with shipments of the Pro model increasing significantly. Although the average sales price of the Pro model significantly exceeded $1,000, deliveries exceeded 20 million units. The last place in the top 10 is occupied by Samsung's Galaxy A02. In total, 18.3 million devices were delivered in 2021. This is the second cheapest model after the Xiaomi Redmi 9A in the top 10.

In the top 10 most popular smartphones in 2021, analysts included a total of seven Apple models, two Samusng products and one Xiaomi.^[9]

Market growth of 13.4% to $365.5 billion - GfK

In 2021, the market volume smartphones grew by 13.4% compared to 2020 and amounted to $365.5 billion. The rise is mainly due to an increased interest in devices that help monitor health. Such data were released by analysts in February 2022. GfK

In their opinion, in 2022, smartphone sales will grow even more due to a shift in demand towards expensive models and devices with support for 5G networks. These same factors contributed to the growth of the market in 2021.

According to the researchers, in the first and second quarters of 2021, the market recorded revenue growth of 28.7% compared to the same period in 2020. However, in the second half of the year there was only a slight increase in revenue by 1.8%. Sales figures in the second half of 2021 decreased by 10.6% compared to the first half of the year.

According to the study, consumers who want to purchase smartphones generally choose better and more powerful models, which led to an increase in the average price to $368 in 2021 from $318 in 2020. This helped compensate for the overall drop in sales during the coronavirus pandemic (COVID-19) infection. The rise in prices is partly due to the emergence of more 5G devices on the market, which have an average price tag of $706. This helped 5G-enabled phones take 73% of the market in monetary terms.

The need to switch to 5G is also explained by the active development of the Internet of Things. Modern networks can no longer meet these needs, so the main stakes of the digital economy are made on 5G technology, researchers say. At the end of February 2022, the drivers of 5G development are the United States, China and Switzerland. By 2025, according to analysts, the global market for new networks will reach $42 billion. The development of 5G infrastructure will be a favorable factor for both the consumer and corporate segments. The technology will be able to offer much broader functionality, including a different level of data transfer speed, uninterrupted maintenance of IoT devices, work in the cloud, ultra-high definition video and the effect of presence.

A GfK survey in the third quarter of 2021 found that only 25% of consumers consider 5G an important feature when buying a smartphone. More important features were named, such as the amount of internal memory (51% of respondents voted for it) and the battery capacity (47%).^[10]

The average cost of smartphones (ASPs) increased by 15% in 2021, according to research firm Strategy Analytics Apple. dominated the smartphone segment with prices ranging from 600 dollars and above, Samsung and led in most other price categories - initial ($36- $99), average ($191- $299) and high ($400- $599). At the same time, the Honor brand managed to break into first place in sales of smartphones worth $300-399, Strategy Analytics noted.

Experts also found that almost every fourth smartphone that entered the market during this period belonged to the $600 + price category. Strategy Analytics believes ASP growth will continue further. This is facilitated by the desire of brands to expand the functionality of their devices, the tendency to increase the size of the display, the growing need for computing power and the further improvement of photo and video functions of smartphones.

As noted in the study, although problems with the supply of components due to a shortage of chips continued to negatively affect the industry, experts noted that as 2022 approached, the situation slowly began to improve

The global smartphone market grew by 5.7%, to 1.35 billion units

The volume of the global smartphone market in 2021 reached 1.35 billion units, an increase of 5.7% compared to 2020. Such data were released by IDC analysts in January 2022.

Deliveries of phones in 2021 could have been higher if not for problems with their supply. All regions of the world have seen strongly unmet demand for smartphones, which is expected to drive strong market growth in 2022.

The second half of 2021 undoubtedly did not meet expectations: shipment volumes were 4.5% lower than in the second half of 2020, says IDC Vice President Ryan Reith. - As we said earlier, supply chain problems and component shortages have begun to significantly affect the smartphone market, and this continues to the present, when we entered 2022. We predict that in the first half of 2022, problems with the supply of components and logistics will continue, but we expect that in the second quarter and beyond the market will return to growth.

According to the expert, in 2021 there was a growing interest of consumers in 5G models and new form factors, such as smartphones with foldable displays.

All five largest manufacturers in 2021 increased the supply of smartphones compared to 2020, and four of them analysts registered a double-digit increase. The most pronounced upward dynamics was observed at Xiaomi - shipments from it increased by almost 30%, and the most modest, 6% rise was registered with Samsung. IDC noted that the figures clearly demonstrate which of the brands benefited most from the sharp weakening of Huawei's position.

Samsung in 2021 retained its leadership in the smartphone market with a share of more than 20%. Apple and Xiaomi also remained in the top three.

Counterpoint Research analysts estimated the volume of the global smartphone market in 2021 at 1.39 billion supplied pipes, which is 4% more than a year ago. At the same time, experts noted that due to the consequences of COVID-19 and the shortage of components, the market volume remained below the pre-pandemic level.

Commenting on the data, senior analyst Harmeet Singh Walia said that the recovery of the smartphone industry after the recession in 2020 was facilitated by pent-up demand in a number of regional markets, including North and Latin America, as well as India. In particular, in the United States, the iPhone 12 was the growth driver in early 2021, and in the final quarter, demand spurred the release of the iPhone 13. Thanks to purchases of new devices to replace the old ones, India also performed well. At the same time, the largest smartphone market - in China - again registered a fall. Among its reasons, experts called the problems in the supply chain associated with the lack of components, and the lengthening of replacement cycles.

Counterpoint agrees with IDC colleagues that the global smartphone market in 2021 could have shown higher growth rates if not for the component shortage. Big brands have fared better than their smaller competitors in their lack of parts, allowing them to strengthen their position.

Strategy Analytics estimates that manufacturers worldwide shipped a total of 1.36 billion smartphones in 2021, up 4.5% from a year earlier. In their study, analysts noted that Samsung increased sales in the Americas amid LG's withdrawal from this regional market, but competition in Asia remained fierce, which affected Samsung's results.^[11]

Although smartphone shipments have recovered in 2021 after the lows noted in 2020, their level is still disappointing compared to the boom experienced during the pandemic by the consumer electronics industry (computers, game consoles, etc.).

Global smartphone market valued at $273.9 billion

In 2021, smartphone sales reached 1.62 billion units worth $273.9 billion, according to the research company Report Ocean. The data were released in December 2021. Experts did not specify the dynamics in comparison with 2020, but said that the market is on the rise and will remain on it in subsequent years.

According to analysts, smartphone sales will grow due to the development of technology in them. Another factor in the rise of the market is associated with the development of the Internet of Things, and one of the main barriers to the smartphone market, researchers cited people's concerns about the negative impact of devices in long-term use.

Samsung is named the largest smartphone manufacturer (the company's share in 2021 exceeded 30%), and Xiaomi is the fastest growing in the coming years. Sales of phones from the Chinese company are expected to increase by 14% per year.

CCS Insight analysts agree that in 2021 the global smartphone market sank a little, but stressed that device sales will be able to return to the pre-pandemic (coronavirus pandemic COVID-19) level no earlier than in 2022. According to experts, in 2021, 1.67 billion mobile phones were sold around the world, which is 6% more than the weak indicators of a year ago, but still 8% less than sales in 2019. This volume includes 1.39 billion smartphones, which is 9% more compared to 2020. CCS Insight believes that - 5G models accounted for approximately 33% of smartphone sales in the world at the end of 2021.

According to estimates by the Taiwanese research organization Market Intelligence & Consulting Institute (MIC), global shipments of 5G smartphones in 2021 increased by 129% and amounted to 550 million units, which corresponds to more than 40% in the total smartphone market.^[12]

Xiaomi first came out on the second place in terms of delivery

In the second quarter of 2021, the company Xiaomi became the second largest manufacturer in the smartphones world. This is the first time Xiaomi has broken into the top two, where it has historically dominated and. Samsung Electronics Apple

In the second quarter, Samsung's share was 19%, Xiaomi was 17%, and Apple was 14%, the assessment of Xiaomi's deliveries in the second quarter indicates a 83% jump.

Overseas expansion was Xiaomi's biggest growth driver, with the company increasing shipments by more than 300% in Latin America, 150% in Africa and 50% in Western Europe.

Half of the world's population uses smartphones

At the end of June 2021, the analytical company Strategy Analytics released a new report, according to which half of the total population of the globe already owns smartphones. Thus, in mid-2021, about 4 billion people began to use smartphones. It took 27 years to reach this historic milestone.

Strategy Analytics senior analyst Yiwen Wu noted:

According to our estimates, the global base of smartphone users has grown sharply from 30 thousand people in 1994 to 1 billion in 2012 and a record 3.95 billion in June 2021. In total, in June 2021, the world's population totals approximately 7.90 billion people, that is, half of all people already own smartphones.

Strategy Analytics senior director Linda Sui added that the world's first modern smartphone, IBM Simon, was launched on the market USA back in 1994. It was followed by other notable models, such as Nokia the 9110 communicator in 1998 Ericsson and R380, which appeared on the European market in 2000. Apple iPhone popularized the smartphone in 2007 Google Android , and democratized the smartphones with an affordable software platform launched in 2008.

Strategy Analytics CEO Neil Mawston also noted that the smartphone is the most successful computer of all time:

Today, smartphones are used by 4 billion people around the world, from urban California to the suburbs of China and rural Africa. Consumers and employees love the convenience, usefulness and security of a connected computer that can be carried everywhere in their pocket. Smartphones have become an indispensable tool for everyday life. According to our forecasts, by 2030 smartphones worldwide will already use 5 billion people.[13]

2020

Sales growth of 5G smartphones 13 times, to 213.26 million units - Gartner

Global sales 5G of smartphones in 2020 reached 213.26 million units, an increase of almost 13 times compared to the volume of a year ago, equal to 16.7 million units. This is evidenced by the data of analysts. Gartner

According to them, several factors contributed to the growth of the market, namely:

• increasing the availability of 5G communication against the background of the wide development of new generation networks;
• expanding the range of 5G smartphones;
• the appearance of inexpensive devices with price tags up to $200.

Researchers believe that the driver of the growth in sales of 5G smartphones in emerging markets will be the desire of buyers to purchase a smartphone with the best characteristics and support for next-generation mobile networks as an additional option.

5G support has now become a standard feature in premium smartphones, especially in the United States, China, Japan and South Korea. Due to cheaper models, the introduction of the technology is especially active in China, where the share of 5G smartphones in 2021 should reach 59.5%. Less expensive 5G-compatible models are becoming more common outside the PRC as well. This will give an additional impetus to the sales of 5G smartphones in all regions, "said Anshul Gupta, senior research director at Gartner.

Gartner did not name the largest manufacturers of smartphones with support for 5G networks. TrendForce analysts gave the lead, Apple attributing it a 31 percent share in that market. She took the second position Huawei with an indicator of 30%. Next Samsung is (11%), and the fourth place was shared by Chinese brands, and having Oppo Vivo Xiaomi approximately the same shares (at the level of 9%). Manufacturers from China accounted for almost 60% of the supply of 5G tubes.

At the end of 2020, TrendForce estimated sales of 5G smartphones at 240 million units, which corresponds to 19% of the total smartphone market.^[14]

The market fell by 5.9% to 1.29 billion units. Apple beats Huawei - IDC

The volume of the global smartphone market in 2020 amounted to 1.29 billion units against 1.37 billion a year earlier. While device shipments declined 5.9%, the market ended the year with strong results, showing an "impressive recovery" in recent months, IDC analysts reported.

Samsung Electronics remained the leader in the global smartphone market in 2020, but pipe shipments from the South Korean corporation sank 9.8% to 266.7 million units, which corresponds to 20.6% of the total volume in the world.

The second place rose, Apple increasing shipments iPhone by 7.9% at the end of 2020. As a result, the share of the American company on an annualized basis increased from 13.9% to 15.9%. In this, the main merit belongs to the new iPhone 12 line, thanks to which a record number of smartphones for Apple was sold in the fourth quarter of 2020 - more than 90 million units. This allowed the company to come out on top in the world in October-December.

The iPhone 12 was a hit. Apple occupies more profitable positions than competitors in the 5G segment due to its pronounced focus on developed markets and sales channels for mobile operators, said Canalys analyst Vincent Thielke.

Huawei, which in 2019 was in second place in the list of the largest smartphone manufacturers, a year later rolled back to third position. The main reason is the US sanctions, due to which the Chinese company was banned from selling phones with Google services. As a result, shipments of Huawei smartphones in 2020 decreased by 21.5%, and the market share - from 17.5% to 14.6%.

Following Huawei are two more Chinese brands - Xiaomi and Vivo. At the end of 2020, they recorded 9.2% and 8% of the smartphone market, respectively. Xiaomi increased sales by 17.6%, Vivo - by 1.5%, which was largely facilitated by Huawei's failures.

According to analysts, the entire smartphone market in 2020 was recovering due to several factors:

• revival of demand in the fourth quarter due to the release of new smartphone models and the traditionally strong New Year season;
• the continued surge in 5G phone shipments;
• large-scale promotions;
• popularity of entry and mid-range models.

In addition, manufacturers, apparently, have better prepared for the second wave of lockdown, providing themselves with a reliable supply channel that is ready to fulfill orders and deliver products to end consumers, says IDC Research Director Nabila Popal. - Lockdowns also force people to spend less money on holidays, travel, dining in a restaurant, etc. As a result, smartphones are in a winning position. Beyond all these factors, credit should be given to the rapid recovery and resilience of smartphone supply chains.

Commenting on the smartphone market research, IDC Worldwide Mobile Device Tracker Program Vice President Ryan Reith emphasized that the recovery of the industry and supply channels has been "truly impressive," and the results of recent months have shown how far the recovery has come.

Reith added that most of the world is either in one form or another of lockdown, or is still awaiting a return to normal everyday life, but smartphone sales are reborn as if nothing had happened. This demonstrates the importance of smartphones in every person's life and lays a solid foundation for further market demand. Amid the movement of the world towards post-pandemic life, IDC believes that demand will grow and the market recovery will accelerate.^[15]

Global Smartphone Market Falls Record

The volume of the global smartphone market in 2020 amounted to 1.25 billion units, which is 11% less than a year earlier. This decline turned out to be a record for all the time and occurred largely due to the COVID-19 coronavirus pandemic and a shortage of chips caused by production problems at enterprises. This was announced on January 5, 2021 by the research company TrendForce.

The largest smartphone manufacturers on a global scale in 2020 were Samsung, Apple, Huawei, Xiaomi, Oppo and Vivo (listed by market share). According to experts, Huawei made the greatest breakthrough, but the Chinese company is unlikely to be able to demonstrate such rapid growth after the separation of the Honor brand.

In 2020, Huawei shipped 170 million smartphones, which is the third indicator after Samsung (263 million devices, deliveries fell below 300 million units for the first time since 2011) and Apple (199 million units). In fourth place in the overall standings is Xiaomi with 146 million phones released, in fifth place is Oppo (144 million). The following Vivo made 110 million gadgets.

The study says that thanks to the active work of the Chinese authorities on the commercial launch of 5G networks, the production of smartphones with their support in 2020 reached 240 million units, which corresponds to 19% of the total market volume. At the same time, Chinese vendors accounted for almost 60% of the supply of pipes capable of connecting to 5G networks.

TrendForce analysts gave the leadership in sales of 5G smartphones in 2020 to Apple and estimated the share of the American corporation in this segment at 31%. The second line in this rating was taken by Huawei (30%), the third - Samsung (11%). In China, Oppo, Vivo and Xiaomi have about 8-9% of shipments of smartphones with support for fifth-generation mobile networks.^[16]

Huawei became the leader in the smartphone market

In mid-June 2020, it became known that Huawei for the first time it became the world's largest producer smartphones and in April 2020 captured 21.4% of the world market. This is evidenced by data from analysts at Counterpoint Research.

In early 2016, Huawei announced it planned to become the world's largest smartphone maker over the next five years, ahead of Samsung and Apple. The Chinese company overtook Apple in 2018, and now it's Samsung's turn.

Despite falling sales across Europe and the global COVID-19 pandemic, Counterpoint Research experts claim that Huawei became the largest smartphone manufacturer in April 2020. The company was able to increase its market share due to its popularity in China. During the pandemic, demand for new smartphones in most international markets fell, but in China, the COVID-19 wave passed earlier and by April the market had already begun to recover.

Samsung, on the other hand, has been hit hard by strict restrictions in India and Europe. The South Korean company accounted for only 19.1% of the smartphone market - a tangible drop in sales compared to 29% in March. Counterpoint Research analysts stressed that demand for the new Galaxy S20 5G series was extremely low compared to previous models. Sales data was not provided, but, judging by indirect reports, sales fell by more than 30%.

So far, there is no data for May, but analysts believe that Huawei can retain the title of the largest manufacturer throughout the second quarter of 2020. Sales in China continue to recover, but demand in Europe, North America and India is still extremely low. These three regions are extremely important to Samsung, which means its sales could fall even further. However, Samsung is likely to return to first place after the normalization of international markets in 2021, analysts say.^[17]

Growth in the number of smartphone users (billion) in the world according to eMarketer

2019

The share of smartphones with OLED displays for the year increased from 4% to 30%

In 2019, the share of smartphones equipped with AMOLED displays (active matrix on organic LEDs) reached 30% against 4% a year earlier. This is evidenced by data from the research company Omdia.

Samsung Display remains the largest manufacturer of such screens, which in 2019 delivered 407 million such products, or 86% of the total market. Thus, the total shipments of AMOLED panels for smartphones in 2019 amounted to 471 million units. This is 16% higher than a year ago.

According to analysts, in the segment of hard/non-moving AMOLED displays for smartphones in 2019, a 26% increase in deliveries was registered, to 313 million units, which. This increase was largely due to Chinese smartphone manufacturers.

As for flexible AMOLED panels, their sales in 2019, on the contrary, slightly decreased and were at the level of 158 million units (-1%). Experts explain this dynamics by the fact that the demand for smartphones Apple and Samsung equipped with flexible AMOLED displays was below expectations. In addition, Chinese brands did not expand the range of gadgets with flexible AMOLED screens during the year.

Leading Omdia analyst Brian Huh says smartphone manufacturers are increasingly introducing AMOLED technology into their devices, even despite the catastrophic situation in the industry due to the COVID-19 coronavirus. Brands from the Middle Kingdom are most active in this direction.

According to experts, in 2019, most of the global smartphone market continued to occupy models with LCD panels. Thus, the share of devices with LTPS displays amounted to 41.3%. In addition, almost 26% of the total supply of smartphones was occupied by devices with a-Si TFT LCD screens (technologies for thin-film transistors made of amorphous silicon).^[18]

The most popular smartphones in the world. Rating

The most popular smartphone in the world in 2019 was the iPhone XR model, which sold 46.3 million units, according to data from the analytical company Omdia.

Another smartphone from Apple - the iPhone 11 - is in second place in the rating with a result of 37.3 million devices sold. The top three was closed by Samsung A10, whose sales in 2019 were equal to 30.3 million units.

Half of the ten most popular smartphones on a global scale at the end of 2019 came from Apple products. Samsung handsets took four places on this list. Xiaomi entered the rating with one gadget.

In 2018, different iPhone models received six positions in the top 10, Samsung phones - three, and Huawei - one. According to Omdia estimates, the most popular smartphone in 2018 was the iPhone 8, which sold 31.5 million copies. In second and third places are the iPhone X and iPhone 8 Plus, respectively.

According to Jusy Hong, director of smartphone market research and analysis at Omdia, Apple smartphones have been the most popular in the world for five years in a row.

Apple's dominant position is even more remarkable when you recall that the rise in price of iPhones led to a reduction in their shipments last year. By offering fewer models than its main competitors, Apple has focused on selling several smartphones popular with a wide audience, such as the iPhone XR, the analyst said.

Analytical company Canalys also published the results of a study of the international smartphone market for 2019 and named the best-selling models. 

Most of the rating was taken by various iPhone models. The iPhone XR turned out to be the undisputed leader in sales, and the iPhone 11 ranks second. This is followed by the Samsung Galaxy A10, A50 and A20. The only Chinese manufacturer in this rating was Xiaomi with the Redmi Note 7 smartphone.^[19]

First market drop since 2008

In 2019, the volume of the global smartphone market decreased by 2% compared to 2018 and amounted to 1.52 billion units. This is the first decline since 2008, according to the research company Gartner.

2019 was not an easy year for smartphone manufacturers, primarily due to an oversupply of expensive devices in developed markets and an increase in the phone update cycle, says Annette Zimmermann, vice president of research at Gartner. - However, the market is expected to recover in 2020 thanks to the launch of 5G networks in new countries. In addition, it will affect that users who may have postponed their smartphone purchases until 2020 in anticipation of falling prices will start purchasing pipes again.

Experts expect global sales of 5G-enabled smartphones to reach 221 million units in 2020, or 12% of the total market.

5G phones will hit the commercial market faster in 2020, Zimmermann said. Devices that cost less than $300 have already been announced. Against this background, sales of 5G smartphones are expected to grow faster than 4G tubes within 12 months, she said.

China remains the largest smartphone market. There in 2019 411.35 million pipes were sold. Developing countries of the Asia-Pacific region combined are in second place in terms of smartphone sales: in 2019, local consumers bought about 363.64 million devices there.

In North America, annual smartphone sales were measured at 152.86 million units, in Latin America - 129.83 million, in Western Europe - 144.14 million.

Some regions will outstrip the overall market in terms of sales growth. Thus, for China, Taiwan and Hong Kong, a 5.1% indicator is predicted, in the countries of the Asia-Pacific region the growth will be 5.7%, and in the countries of the Middle East and North Africa - 5.9%.^[20]

Analysts Canalys confirmed the fall in the global smartphone market at the end of 2019 - by 2%, to 1.37 billion units. At the same time, sales increased in the third and fourth quarters.

When we saw the first decline in global market volume a couple of years ago, Canalys said the industry was moving from an era of growth to a cyclical era. Now that's what happened. This surge in growth will not last forever, but it will be just one of several peaks and drops as users' smartphone refresh rates reach a new equilibrium point, said Canalys senior analyst Ben Stanton.

Samsung retained its leadership, which accounted for about 21.8% of smartphone shipments in 2019. Huawei climbed to second place with a 17.6 percent stake, despite US sanctions that severely limited the Chinese company's business outside the Celestial Empire. Apple dropped to third place in the ranking of the world's largest smartphone manufacturers (14.5%).

As Huawei prepares to launch a new wave of devices without Google Mobile Services (GMS), its goals are now very different. The company must maintain the highest possible partner channel support in key markets such as Western Europe. It needs to organize an ecosystem of developers to support Huawei Mobile Services (HMS). And most importantly, it should support scaling. If she loses it, then they will lose interest from the developers, - said Canalys analyst Mo Jia.

According to experts, Chinese manufacturers have stormed developing countries even more, focusing on smartphones worth up to $100 and the owners of push-button phones. Apple has also been quite successful in developing countries thanks to lower prices for the iPhone 11.

Why used smartphone sales are growing rapidly and the entire market is falling

Global deliveries of used and officially restored smartphones in 2019 reached 206.7 million units, an increase of 17.6% compared to the previous year. This was announced on January 13, 2020 by IDC analysts.

The restored ones include those phones in which the manufacturers themselves change the case, screen and battery, update the operating system and assign it a new serial number. Such devices have an official warranty from the manufacturer and are packaged in a box with new headphones, a charger and accessories. Thus, restored smartphones look like new, but are sold at a discount relative to new products.

According to experts, the demand for used smartphones is growing more and more due to the fact that buying such gadgets can be significantly saved if compared with purchasing a new device.

In addition, when choosing a device, customers often face a dilemma between the new desired specifications and a reasonable price. In the medium term, there are no breakthrough technological innovations that would seriously encourage people to switch to new devices en masse, while simultaneously hindering the purchase of outdated "tubes" in the secondary market.

Refurbished and used devices are still a low-cost alternative for both consumers and companies looking to save money when buying a smartphone. Moreover, the ability of manufacturers to offer more affordable restored devices in markets in which they usually do not have a presence helps these players develop their brand, as well as the ecosystem of applications, services and accessories, - said the Worldwide Quarterly Mobile Phone Tracker research manager. at IDC Anthony Scarsella.

IDC expects that the introduction of the new 5G cellular standard will affect the used smartphone market: owners of LTE devices will begin to sell them more actively in order to purchase more advanced 5G models.

If sales of used smartphones are growing rapidly, then new ones, on the contrary, are declining. According to preliminary IDC calculations, in 2019, manufacturers delivered a total of 1.89 billion new smartphones, which is 5% less than a year earlier. Deliveries are expected to shrink to 1.73 million units by 2023, with market size falling by about 1.8% annually. At the same time, the volume of the used tube segment will grow by 13.6% per year and will reach 332.9 million units.

According to IDC analyst William Stofega, factors such as regulatory requirements and environmental initiatives have a positive effect on the used smartphone market, but the economic component affects the most. The biggest role in the growth of the recovered device segment is played by the fact that people can use their devices to buy a new or used device, he added.

In full accordance with global trends, the Russian used smartphone market is also developing. In 2019, according to Avito, Russians purchased 12% more used smartphones than in 2018. At the same time, the most popular trade-in scheme provides a powerful flow of used devices into the channel. As a partial payment for the purchase of new products, Russians, according to experts from Inventive Retail Group, transferred more than 1.3 million used smartphones to retail in 2019, in the next three years this volume will increase by an average of 25-30% annually.^[21]

Huawei and Samsung are the largest manufacturers of 5G smartphones

In mid-January 2020, the names of the world's largest manufacturers of smartphones with support for 5G networks became known. Huawei shipped the most of all such pipes in 2019 - 6.9 million units. Samsung has sold 6.7 million 5G devices, writes Xda Developers, citing data published by the companies themselves.

True, Samsung itself declares its superiority in the 5G smartphone segment: according to the manufacturer's calculations, it accounted for 53.9% of shipments of such equipment in 2019.

By January 16, 2020, Samsung is offering the following 5G-enabled smartphones: Galaxy S10 5G, Galaxy Note 10 5G, Galaxy Note 10 + 5G, Galaxy Fold 5G and Galaxy A90 5G. The cost of these devices varies from $700 to $2,300. Also, the South Korean vendor plans to launch tablet computers on the market that can connect to 5G networks.

As for Huawei's range, it includes 5G phones such as the Mate 30 5G, Mate 20 X 5G, Mate X 5G, Nova 6 5G and Honor V30. The 6.9 million 5G devices reported by the Chinese company also include models of the Honor sub-brand.

According to preliminary estimates by IHS analysts, 13.5 million 5G-enabled smartphones entered the global market in 2019. In 2020, 253 million such gadgets are expected to be delivered.

Smartphone manufacturers are actively increasing the supply of 5G models, which should contribute to a further drop in prices for them. Chinese vendors are likely to make a significant contribution to increasing the availability of 5G technology. In particular, Xiaomi offers the cheapest 5G model by mid-January 2020 - the Redmi K30 5G smartphone, which is priced at $285.

By the end of 2020, Huawei plans to sell about 100 million 5G smartphones. All models of Huawei 5G smartphones support both autonomous (SA) and non-autonomous (NSA) network modes.^[22]

Leading Smartphone Sales in Europe

2018

Apple and Samsung take 86% of profits in the smartphone market

Apple and Samsung accounted for 86% of global smartphone market profits in 2018. Such data were released on April 15, 2019 by analysts at Counterpoint Technology Market Research.

In 2018, Apple took 73% of its profits from global smartphone sales, while Samsung took 13%. Both manufacturers have declined compared to 2017.

Experts note that the total profit of Chinese smartphone manufacturers in 2018 jumped by 24% and amounted to 13% of the total market. The rise of companies from the Middle Kingdom was due to the rapid growth of the premium device segment. In 2018, the sale of pipes with price tags from $400 rose by 18%, while the volume of the entire global smartphone market sank by 3%.

In 2018, Apple released phones worth more than $1,000, allowing Chinese brands to raise prices for their flagship devices, resulting in an average selling value of 14% for their products^[23]

Chinese vendors are drawing attention to their devices with new features such as a monolithic display with a single cutout for the camera, a fingerprint scanner built under the screen, ultra-fast charging of batteries and artificial intelligence implemented at the hardware level. In addition, companies in 2018 actively developed stimulating sales initiatives, for example, to the trade in program and cashback payments.

With the premium smartphone market expanding in 2019, we believe that Chinese brands will have a good chance to increase their profits. Targeting buyers looking for replacements for their devices and offering flagships at the right prices will help them succeed, says Counterpoint Technology Market Research.

GfK: Global Smartphone Market Reaches $522 Billion in 2018

With a 44 percent smartphones share, mobile phones and wearables still hold the lead in the technology goods market, which has reached 1.2 trillion in total. dollars While global smartphone demand declined by three percent in 2018, sales remain strong, reaching $522 billion. These are the data published GfK in February 2019 specifically for the beginning of the Mobile World Congress in. To Barcelona

The continued trend towards premium models contributed to further growth in global smartphone sales in 2018. In numbers, this is an increase of five percent ($522 billion). However, demand for smartphones declined by three percent in 2018 compared to 2017 - to 1.44 billion units sold worldwide. Smartphones became a major part of overall consumer spending in the global home appliances and electronics market last year. In 2019, one percent market growth is expected.

The results of the 4th quarter of 2018 show a similar trend. About 375 million smartphones (a decrease of 7 percent) were sold globally year-on-year, sales in monetary terms amounted to $144 billion.

Lack of innovative solutions leads to increased replacement cycle

About twelve percent of smartphones sold in 2018 (nine percent in 2017) cost more than $800. Intense competition continues in the middle price segment of $150-400, which accounted for 46 percent of smartphones sold in 2018 (44 percent in 2017).

In the 4th quarter of 2018, the smartphone replacement cycle continues to increase: the shortage of attractive innovative solutions affects, which also led to a decrease in the average sales price by two percent, to $384. In Russia, over the same period, the average price tag of a smartphone increased by 9 percent and in 2018 amounted to $250.

Technology for a Better Experience

Research by GfK Consumer Life shows consumer attitudes towards property are changing. This is not only about the fact that people prefer to have less things of better quality at higher prices, but also about the fact that experience is more important than possession. Increased memory, a larger display diagonal or more megapixels in the camera - all this is no longer able to captivate consumers and stimulate demand.

Igor Richter, telecommunications expert at GfK, comments: "Our research shows that although new smartphones have characteristics and performance comparable to laptops, they still need conversion into a new experience. High-quality games with high system requirements are the main sales driver for the personal computer industry, while the potential for using smartphones for such games remains undisclosed. Despite the relatively small display sizes compared to PCs, their powerful chipsets, high resolution and growing battery volumes make gaming smartphones an ideal portable solution for gamers. "

The main categories of wearable devices in 2018 showed growth: demand year-on-year increased by 16 percent, and sales by 35 percent. Demand drivers were smart watches with a SIM card slot, which accounted for the bulk of sales in the wearable category. SIM-enabled smartwatches accounted for 17 percent of sales in the wearable category (8 percent in 2017).

Demand in Central and Eastern Europe and Developing Asia * only partially offset the decline in China

The Chinese market is the main consumer in the global smartphone market, in addition, it is the home market for Chinese brands that have reached the global level. 40 percent of Chinese brand smartphones in 2018 were purchased outside of China (31 percent in 2016). The decline in demand in China in the 4th quarter of 2018 (minus 19 percent year-on-year) by volume (27 percent of sales volume) had a significant impact on global indicators. Continued demand growth in developing countries in Asia * (plus 13 percent yoy) and Central and Eastern Europe (plus three percent yoy) only partially offset the decline in China in Q4 2018.

Market growth of 1.2% to $1.56 billion - Gartner

On February 21, 2019, the analytical company Gartner published some results of its research on the global smartphone market. In 2018, consumers around the world bought 1.56 billion such devices, which is 1.2% more than a year earlier.

At the same time, in North America, annual smartphone sales decreased by 6.8%, in the developed countries of the Asia-Pacific region - by 3.4%, in China - by 3%.

In mature markets, demand for smartphones relies heavily on the appeal of flagship models from three leading brands - Samsung, Apple and Huawei. And two of them recorded a decline in 2018, "said Anshul Gupta, senior research director at Gartner.

According to him, the demand for the most expensive and technical advanced devices continues to decline due to rising prices for them and the slow introduction of innovative functions. At the same time, sales of entry and mid-range phones are still growing due to the price factor.

In 2018, Samsung and Apple registered a drop in smartphone sales by 8% and 3%, respectively, while Huawei showed an increase of 35%. The top five smartphone manufacturers Xiaomi and Oppo have also increased the implementation of these gadgets.

According to Anshul Gupta, demand for iPhone is declining for two main reasons: firstly, consumers are postponing the purchase of new smartphones, expecting innovative products, and secondly, there are many smartphones similar in characteristics to the iPhone, offered at lower prices.

Both problems limit Apple's sales growth prospects, the expert emphasized.

As for Samsung, the South Korean corporation is more affected by heightened competition from Chinese brands exploring new segments of the smartphone market.^[24]

Best-selling smartphones - Canalys

In February 2019, the analytical company Canalys presented a list of the world's best-selling smartphones for the previous year. The first four places were taken by Apple devices, and the fifth position was taken by the Samsung Galaxy J2 Prime model, introduced back in 2016.

The ranking of the most popular smartphones in 2018 is as follows:

• Apple iPhone 8
• Apple iPhone X
• Apple iPhone 8 Plus
• Apple iPhone XR
• Samsung Galaxy J2 Prime
• Apple iPhone XS Max
• Samsung Galaxy S9
• Xiaomi Redmi 5A
• Apple iPhone 7
• Samsung Galaxy S9+
• Oppo R15
• Xiaomi Redmi Note 5
• Samsung Galaxy J2 Pro
• Samsung Galaxy J6
• Apple iPhone XS
• Vivo X21
• Apple iPhone 6
• Xiaomi Redmi 6A
• Samsung Galaxy Note 9
• Xiaomi Redmi 6

Global shipments of Apple iPhone 8 in 2018 exceeded 36 million units. In different regions, the balance of power is different. For example, in the Asia-Pacific region, the first place in sales was taken by the Redmi 5A, which in 2018 sold more than 15 million units there. In China, there was no equal model Oppo R15, which the Chinese purchased in the amount of more than 15 million pieces.

In Latin America, the Middle East and Africa, the most popular smartphone is the Samsung Galaxy J2 Prime. In Central and Eastern Europe, the Samsung Galaxy J3 (2017) became the leader in sales, and in Western Europe - the iPhone 8.

Meanwhile, in February 2019, Business Insider reviewers ranked 20 smartphones with the best performance. Journalists gave the first place to the OnePlus 6T model and noted its attractive cost compared to competitors. The whole list is as follows:

• OnePlus 6T
• iPhone XR
• Google Pixel 3/Pixel 3 XL 
• Samsung Galaxy Note 9
• iPhone XS
• iPhone XS Max
• LG V40
• iPhone X
• Samsung Galaxy S9 Plus
• iPhone 8 Plus
• Samsung Galaxy S9

The market fell 4.1% to 1.41 billion devices - IDC. Top 5 leaders

In 2018, smartphone shipments globally reached 1.41 billion units, down 4.1% from 2017. The market size falls for the second year in a row, while before it showed only growth, according to IDC data released at the end of January 2019.

The global smartphone market is in trouble, says IDC analyst Ryan Reith. - With the exception of a handful of fast-growing regions like India, Indonesia, South Korea and Vietnam, we didn't see much positive activity in 2018. We see several reasons for this: the lengthening of the timing of the purchase of new devices to replace old ones, the growing degree of penetration of smartphones in many large markets, political and economic uncertainty, and the increasing frustration of consumers about the increase in prices.

The study notes that despite the problems in the global market, the main attention is focused on China, since this country greatly affects world performance. China accounts for approximately 30% of smartphone sales, and in 2018, tube shipments in this market decreased by 10%. The high level of stocks of unsold devices has become a problem in the Middle Kingdom, especially against the background of a decrease in consumer spending on the purchase of gadgets in general.

The largest smartphone manufacturers in the Chinese market are local brands: Huawei, Oppo, Vivo and Xiaomi. Their joint share in 2018 was 78% against 66% a year earlier.^[25]

At the world level, the share of the leading five increased during this time from 63% to 69%. If we take the six largest vendors, then in 2018 they accounted for about 75% of smartphone sales. The balance of power in the market is presented in the table below.

According to IDC analyst Anthony Scarsella, due to the fact that consumers are updating their phones less and less, manufacturers will have to re-find a balance between the latest technology, attractive design and affordable prices.

5 trends in the smartphone market in 2019

In early December 2018, ZDNet named the main technological trends that, according to journalists, will prevail in the smartphone market in 2019.

Foldable smartphones

In 2019 Samsung , it will release its first foldable smartphone on sale, and, most likely, competitors will follow the example of the South Korean manufacturer. Google has already adapted Android to devices that bend in half. The optimized version of the OS should move equally smoothly from a dual screen mode the size of a tablet to a single-screen one, as on a regular smartphone. For example, if a user launches a video on a doubled screen, he can continue to watch it, revealing the full-size display without losing a second.

Smartphone components will become more innovative

Smartphone component manufacturers have prepared several new products that will improve displays, cameras and other elements of mobile devices.

Under-display fingerprint scanners

In 2018, several smartphone models were released, equipped with fingerprint scanners, which are located under the display. Such gadgets do not have a separate button for a fingerprint scanner. An influx of such phones is expected in 2019.

ZDNet reviewers note that the development of biometrics in smartphones has led to the appearance of such sensors in an inconvenient place - on the back cover. Many users would like to see them from the front. Although facial recognition technologies are gradually gaining popularity, they were somewhat annoying in 2018, experts say.^[26]

5G

In 2019, the first devices with support for fifth generation (5G) networks should appear on the smartphone market. In December 2018, Qualcomm and MediaTek presented their processors with built-in 5G modems.

Artificial intelligence is everywhere

In 2018, more and more smartphones were equipped with AI technologies in one form or another. In 2019, there will be even more of them in mobile devices.

Shares of smartphone suppliers in the Chinese market

2017

Gartner: Decline in Q4, but year-on-year growth of 2.7% to 1.5 billion units

On February 22, 2018, Gartner analysts reported the first fall in the smartphone market and explained it by the absence of truly new devices.

The first ever decline occurred in the fourth quarter of 2017, when 408 million smartphones were sold, which is 5.6% less than in the same period in 2016. At the end of 2017, the market volume increased by 2.7%, exceeding 1.5 billion units.

According to Gartner Research Director Anshul Gupta, one of the reasons for the drop in demand for smartphones is the increase in the use of devices due to the lack of innovative models.

While demand for high-quality tubes 4G-communication and improved cameras remain strong, the high expectations and a small number of benefits that buying new smartphones provides are dampening their sales, Gupta reported.

He also named another reason for the fall in the market - the lack of high-quality ultra-budget smartphones that would be of interest to owners of ordinary push-button phones. Therefore, such users, when it comes to updating their handsets, prefer to purchase a more advanced device of the same segment, but not a smartphone.

In 2017, Samsung strengthened its leadership in the global smartphone market, capturing a share of 20.9% against 20.5% in 2016. Despite the decline in sales of the Galaxy S8 and S8 +, these models helped the South Korean company raise the average check for its smartphones. The release of new flagships, scheduled for the first quarter of 2018, should contribute to profit growth and the average sales value of products, despite increased competition and a decrease in smartphone consumption, the study says.

In 2017, iPhone sales, as well as Apple's market share, declined, which analysts attribute to the late launch of the iPhone X, as well as the lack of significant innovations in the iPhone 8 and 8 Plus models.

The joint share of Samsung and Apple remained virtually unchanged for the year, while the share of the five largest Chinese smartphone manufacturers increased by 4.2 percentage points in 2017.^[27]

IDC: First year-end decline to 1.472 billion devices

In early February 2018, the analytical company IDC announced the results of the global smartphone market in 2017. The supply of devices sank only 0.1% (manufacturers produced 1.472 billion devices against 1.473 billion in 2016), but this decline in annual terms turned out to be the first in the entire IDC observations of the market.

Commenting on the results, IDC senior analyst Jitesh Ubrani noted that in 2017, the flagship models of previous worship turned out to be a more preferable option for many buyers than new, ultra-expensive high-end smartphones.

The specialist also drew attention to the desire of leading players to expand the product range in order to cover as many price segments as possible and increase the audience. In such a situation, it was especially difficult for smaller manufacturers: in the category of inexpensive devices, they experienced incredible competitive pressure from the Chinese brands Honor, Vivo, Xiaomi and Oppo, while Apple, Samsung and Huawei still reigned in the premium smartphone segment.

Characterizing the balance of power in the industry, analysts said that Samsung remains the leader in the global smartphone market, despite the fact that in the final quarter of 2017, the South Korean giant lost to Apple. At the end of the year, Samsung released 317.3 million devices, increasing shipments by 1.9% compared to 2016 in 311.4 million devices. Samsung's market share was estimated at 21.6%.

Apple's annual deliveries iPhone increased by 0.2% to 215.8 million units, taking into account which 14.7% of the market was under the control of the American corporation.

The top three was closed by Huawei, which increased deliveries by 9.9%, to 153.1 million units, which corresponds to a market share of 10.4%.

Chinese brands Oppo and Xiaomi entered the top 5 with annual results of 111.8 and 92.4 million smartphones and shares of 7.6% and 6.3%, respectively.^[28]

GfK: Up 9% in money

The volume of the global smartphone market in 2017 amounted to 1.46 billion devices, and in monetary terms - $479 billion. Such data are provided in the GfK study published on January 24, 2018.

Experts note that piece sales of smartphones increased by 3%, but 9 percent growth was registered in the money, which was facilitated by the rise in price of devices. At the end of 2017, the average sales price of devices rose by 10% on an annualized basis, reaching $363, which was a record pace for the industry. Analysts attribute the trend to the popularity of high-end large devices with frameless displays.

GfK statistics indicate that one of the most dynamic markets in the world in 2017 was Central and Eastern Europe (CEE), which includes Russia. In 2017, 85.2 million smartphones were sold in the region, which is 9% more than in 2016. Even more impressive progress in money: sales increased by 26%, from $16.8 to $21.2 billion. In 2018, demand in units is expected to grow by another 6%, the drivers of which will be the Russian and Ukrainian markets.

In addition to CEE countries, Latin America (+ 9%), developing countries Asia (+ 8%), the Middle East Africa and (+ 4%) demonstrated higher than the market average, where 115.8, 232.7 and 176.5 million devices were sold, respectively.

The worst dynamics in 2017 was observed in the developed countries of Asia, where sales decreased both in kind and in monetary terms. At the end of the year, the volume of this market amounted to 68.5 million devices and $44.2 billion, which is 6% and 4% less than in the previous year. The decline was especially pronounced in South Korea, where at the end of the year sales in pieces sank by 21% at once. However, in 2018, experts predict a recovery in demand and an increase of 2%, mainly due to an improvement in the situation in Japan.^[29]

TrendForce: Up 6.5% to 1.46 billion thanks to Chinese brands

In 2017, the global smartphone market reached 1.46 billion units, an increase of 6.5% compared to the previous year. This rise was largely provided by Chinese companies, analysts at TrendForce reported.

Telecommunications operators from the Middle Kingdom sold phones at reduced prices in exchange for connecting to their tariff plans. At the same time, Chinese smartphone manufacturers actively held events to sell devices in emerging markets.

Samsung Electronics remained the leader in the global smartphone market, which in 2017 delivered a record number of pipes - 320 million units, which is 3% more than a year ago. High demand for J-series models helped compensate for the decline of the South Korean giant in the PRC market.

Despite the success of the flagship iPhone X device, shipments of Apple phones in 2017 increased by only 3%. The main reason for such a weak increase is the technical barriers that hindered the improvement in the production efficiency of innovative models, the study says.

For several years, Chinese brands have achieved strong results thanks to strong sales of phones in the home market. However, the penetration of smartphones in the country has reached the limits, so both large companies and young manufacturers have switched to foreign developing regions and cooperation with foreign operators, hoping to maintain their positions.

In 2017, Xiaomi increased its smartphone production by 76%, which allowed the company to expand its distribution channel as part of physical retail and strengthen its presence abroad, including in India and Indonesia.

Chinese Oppo and Vivo increased smartphone shipments by 17.8% and 19.5%, respectively, in 2017 compared to 2016. These companies focused on developing a strategy that focuses on the local market and creating low-cost models of a high technical level.^[30]

2016

The Chinese ahead of Apple and Samsung in the smartphone market

On January 25, 2017, TrendForce, an analytical company, released the results of a study of the global smartphone market. Chinese brands outstripped leaders in terms of output, experts said.

TrendForce estimates that global smartphone shipments reached 1.36 billion in 2016, up 4.7% from a year earlier. Chinese manufacturers have released a total of 629 million devices, or 46% of the total. The two largest vendors - Samsung Electronics and Apple - have prepared 519 million smartphones for sale. Analysts expect that in 2017, companies from the Middle Kingdom will occupy about 50% of the global smart phone market, complicating the position of competitors.

In 2016, Samsung cut smartphone shipments by 3.3%, while the South Korean giant's market share shrank to 23%. The fall in the number of products produced and the share in annual terms turned out to be the second in a row.

Samsung's main problems were related to the failed release of the flagship Galaxy Note 7 model (it was withdrawn from sale due to mass marriage) and the activity of Chinese companies, which strengthened their positions in various market segments - from cheap to expensive premium devices.

In 2016, Apple experienced its first ever decline in smartphone sales. The regression was measured at 15.3% and was caused by the lack of innovative features in the Apple iPhone 7 and iPhone 7 Plus, analysts said. According to their forecasts, in 2017, the release of the iPhone will increase by several percent, and the fall of Samsung will continue.

The top three smartphone manufacturers in 2016 were closed by the Chinese Huawei. Next are her compatriots Oppo and Vivo, who shipped 180 million pipes for two in a year, which allowed them to get ahead of Lenovo and Xiaomi.

The study also says that one of the most anticipated events in early 2017 should be the return of the Nokia brand to the smartphone market.^[31]

The most popular smartphones

On March 22, 2017, analysts at IHS Market released a list of the world's most popular smartphones. The top three consist exclusively of Apple products.

In their report, experts do not name the exact sales figures, but presented a graph showing approximate demand. The iPhone 6s model is recognized as the best-selling smartphone, the world deliveries of which in 2016 amounted to about 60 million units.

In second position is the Apple iPhone 7 with annual shipments of just over 50 million copies. The top 3 includes another device manufactured by Apple - the iPhone 7 Plus, the release of which in 2016 exceeded 25 million units.

Apple has once again demonstrated that its new phones contain enough innovation and new features to help the company grow sales and remain successful. At the same time, Apple can successfully sell older products for a long time, the study said.

Five Samsung models were among the top ten best-selling smartphones in 2016: Galaxy S7 edge, Galaxy J3 (2016), Galaxy J5, Galaxy S7 and Galaxy J7. At the same time, the Galaxy S7 and Galaxy S7 edge sold 10 million more units over the year than their predecessors in a comparable period of time. This was facilitated by promotions, in which, in particular, flagship devices were sold complete with a Gear VR virtual reality helmet.

In the top ten most popular smartphones was only one device released not by Apple or Samsung. This is the Oppo A53. In 2016, the Chinese company increased the supply of smart phones by 109%, which allowed it to take fourth place in the list of the largest brands in the market. At the same time, it is worth noting that more than 80% of Oppo phones are sold in the Celestial Empire.^[32]

Sales growth despite Samsung and Apple declines

On February 15, 2017, the analytical company Gartner published brief results of a study of the global smartphone market. Its volume grew by 5% despite a drop in sales from leading companies Samsung Electroncis and Apple.

According to Gartner, almost 1.5 billion smartphones were sold worldwide in 2016, compared to 1.4 billion a year earlier. Samsung remained in first place in terms of sales of these products, but the market share of the South Korean giant for the year decreased from 22.5% to 20.5%. Apple, which follows, also experienced a decline: the corporation's share fell from 15.9% to 14.4%.

Gartner Research Director Anshul Gupta notes that Samsung smartphone sales began to decline in the third quarter of 2016 and continued to fall in the fourth due to the recall of the flagship Galaxy Note 7 model, which turned out to be unsafe for users.

The departure of the Galaxy Note 7 has left a big gap in the market for large-sized phones... Samsung needs a successful launch of the new flagship Galaxy phone to maintain the momentum made by the Galaxy S7, as well as a new smartphone with a large screen and stylus, Gupta said.

In addition to the failed release of the Galaxy Note 7, Samsung's business has been negatively impacted by competition from Chinese manufacturers such as Oppo, BBK, Huawei, ZTE, Xiaomi and Lenovo, which are actively strengthening their positions in foreign markets. In October-December 2016, Huawei, Oppo and BBK accounted for about 21.3% of the global smartphone market, which is 7.3 percentage points more than a year ago.

According to Anshul Gupta, sales of premium models helped Huawei close the gap with Samsung to 36 million smartphones sold in October-December 2016 against more than 50 million pipes in the same period the previous year.

Oppo in 2016 ranked fourth in sales of smart phones on a global scale and first in the Celestial Empire, which was facilitated by the release of devices with high performance, fast charging and advanced front cameras.^[33]

6.6% growth due to Russia - GfK

On February 8, 2017, the analytical company GfK published the results of a study of the global smartphone market. Experts reported that sales of the devices grew by 6.6% partly due to the Russian and Ukrainian markets. Smartphone sales in Russia increased by 10%.

According to GfK estimates, 1.4 billion smartphones were sold worldwide in 2016, compared to 1.32 billion a year earlier. At the same time, revenue rose to $428.9 billion from $398.1 billion.

The highest rise - 17 percent - was shown by China, where 385.3 million smartphones were sold in 2016. Sales of these electronics increased by 16% in Central and Eastern Europe, to which Russia belongs.

Analysts did not give annual indicators for the Russian market, but reported an increase in smartphone sales in the Russian Federation by 10% in October-December 2016 compared to the same period in 2015. This rise was facilitated by the stabilization of the ruble. The volume of the Ukrainian smartphone market rose by 34% due to the improvement of the political situation, the study says.

Earlier, MTS calculated that in 2016, Russians purchased 26.6 million smartphones in the amount of 329.8 billion rubles, which is 5% and 26.3% more than a year ago. According to Svyaznoy, the Russian market in 2016 grew by 3% in pieces and by 25% in money.^[34]

According to GfK forecasts, in 2017, smartphone sales in Central and Eastern Europe will increase by 8% and reach 84.4 million units.

In 2016, a drop in sales of "smart" phones in physical terms was recorded only in Western Europe (by 3%) and Latin America (by 1%). There was a rise in money everywhere, but in North America the dynamics were close to zero.

Analysts note that in the fourth quarter of 2016, the North American market was able to return to growth thanks to the release of flagship products and promotions conducted by cellular operators in the United States.^[35]

2015: The Chinese are a step away from leadership

On January 14, 2016, the analytical company TrendForce published the results of a study of the global smartphone market. Experts drew attention to the fact that Chinese manufacturers almost caught up with the leaders of Apple and Samsung in terms of sales.

According to TrendForce, in 2015, global smartphone shipments increased by 10.3% compared to the previous year and reached 1.3 billion units. Brands from the Middle Kingdom combined produced 539 million pipes or more than 40% of the total. A little more - 547 million devices - for two prepared for sale Samsung and Apple.

Experts expect that already in 2016, Chinese manufacturers will become the largest in terms of smartphone shipments, occupying about 45% of the market. Thus, almost every second smartphone sold in the world will belong to the Chinese brand, says TrendForce analyst Avril Wu.

In the top ten smartphone suppliers in 2015, seven places were taken by companies from the PRC. The highest is Huawei, which shipped 108 million smartphones, which allowed the vendor to sit in third position after Samsung and Apple.

Huawei has invested lavishly in R&D in recent years, as well as developing its own mobile processors and amassing rich chip-related intellectual property. As a result, the company was able to strengthen its position in foreign markets, avoid patent disputes with competitors and establish production of products that are not inferior in quality and functionality to devices of international brands, TrendForce says.

Samsung remained the leading smartphone manufacturer in 2015, but shipments from the corporation for the first time in history decreased - by 1.8% to 320 million units. The South Korean giant's share fell from 28% to 25%.

Amid the failures of a competitor, Apple was able to get closer to it, gaining a 17.5 percent market share in 2015. This corresponds to 227 million issued, iPhone which is 17.7% more than a year earlier.

Lenovo, which in 2014 closed the top three, a year later was only in fifth place with 92 million smartphones delivered.^[36]

2014

Chinese eat away Samsung share

On November 24, 2014 BI , Intelligence published a graph reflecting the dynamics of the position of leading manufacturers smartphones from the second quarter of 2008 to April-June 2014. Visual statistics are based on data from research agencies IDC and Strategy Analytics.^[37]

Samsung's work in the smartphone market is complicated by the influence of Chinese competitors

As you can see in the illustration, in four years Samsung has become the undisputed leader in the global smartphone market, but since the beginning of 2014, the South Korean company has not been doing the best.

Samsung is under serious competitive pressure on two fronts: it is hard to resist Apple in the corporation's premium tube segment, and pressure from Chinese manufacturers such as Lenovo, Huawei, ZTE and Xiaomi is intensifying in the low-cost device sector.

The latter in just a few years was able to turn from a little-known smartphone developer to the third largest manufacturer in the world in terms of the volume of supplies of these products. According to IDC analysts, in the third quarter of 2014, Xiaomi prepared 17.3 million smart phones for sale, which is three times more than a year earlier. The company's market share increased from 2.1% to 5.3%. Xiaomi expects 70 million people worldwide to be active users of its smartphones by the end of 2014.

The activity of Chinese competitors undermines Samsung's business, which prompts the company to take drastic measures. According to The Wall Street Journal, the head of Samsung's smartphone and tablet division, J.K. Shin, will transfer his powers to the head of the consumer electronics division, B. K. Yoon^[38]

Also in 2015, Samsung is going to reduce the range of smartphones by 25-30%, paying more attention to mid-range and entry-level devices. IDC estimates that company's market share at 23.8% as of the third quarter of 2014. A year earlier, this figure was 32.5%.

Samsung's main hope in 2014 was the flagship Galaxy S5, but demand for it was noticeably lower compared to its predecessor. In the three months since the Galaxy S5 appeared in stores in April, this device has sold 12 million units. Galaxy S4 sales for the same time period in 2013 amounted to 16 million units.

eMarketer forecast to 2018

According to the forecasts of eMarketer researchers, the total number of smartphones in active use on the planet for the first time will exceed the 2 billion mark by 2016 and will amount to 2.16 billion against 1.9 billion in 2015 and 1.6 billion devices in 2014.

The total number of smartphone users, according to Analysys Mason experts, will triple in the next five years and exceed 3.4 billion by 2017. However, the growth rate of new smartphone users is gradually slowing down, from 39% in 2011 to 29% in 2012. In 2013, a decrease in the influx of new smartphone users is expected to be up to 20%.

As for the volume of shipments of smartphones, they will grow from 700 million in 2012 (which is 41.2% of the total volume of shipments of mobile phones), to 1.37 billion smartphones by the end of 2017 (then the volume of shipments of smartphones will be 70% of the total volume of shipments of mobile phones). We add to this that according to the forecast by 2017, the transition to a newer model smartphone will cause the purchase of a smartphone in three out of four cases, while now for this reason they buy smartphones in less than half of the cases.

According to Gartner analysts, about 66% of mobile phones sold worldwide in the third quarter of 2014 were smartphones. However, if we consider the number of users (as they do in eMarketer), then the proportion of people with smart pipes does not exceed 40% at the end of 2014. Smartphones will become more ordinary phones only in 2018.

In 2018, smartphones will account for more than half of the mobile phones used by people around the world.

2012: Mobile Platforms Forecast to 2017

In the global smartphone supply market, Windows Phone will become the fastest growing OS in the next five years. Nevertheless, the market share of this platform will not cross the 10% mark by 2017. Such data are cited by Analysys Mason experts in their forecast on the global trends in the smartphone market for the period from 2012 to 2017. In the study, in particular, it was noted that by 2017 Microsoft will put on the market as many units of devices running Windows Phone as Apple will put on the market in 2012.

As noted in the study, in the next five years, the Windows mobile platform will be the fastest growing operating system in terms of the number of supplies of devices based on it. Growth will range from 11 million units in 2011 to 136 million units by 2017. However, the share of Windows smartphones in the global market will be only 9% in the global smartphone supply market in 2017. For comparison, the share of other leading platforms by 2017 is expected to be 23% for Apple and 58% for Android.

By the way, speaking of the leading OS, the study indicates that up to the specified share (58%) in the global volume of smartphone supplies - Androidsmartphones will grow by the end of 2013 and in the next four years will hold this market share, without demonstrating, however, further growth (while the global market will continue to grow). Basically, according to experts, this situation will develop due to the lack of other significant players in the market from whom the leader could win a share in the growing market.

Analysys Mason experts point out that the presence of the third significant mobile OS in the face of Windows in the smartphone market will benefit mobile operators, as this will reduce the level of market control from the dominant Apple and Google. It also encourages mobile subscribers to move from one OS to another.

2011

China is the leader in smartphone sales

At the end of the third quarter of 2011, China became the world leader in smartphone sales, ahead of the United States. This data is contained in a study conducted by the consulting agency Strategy Analytics. China for the first time ahead of the United States in this market^[39].

According to the results of July-September 2011 the number of shipments of mobile gadgets to China amounted to 24 million against the same figure of 23 million in the United States. Agency analysts also noted that during the reporting period in China, sales increased by 58%, while in the United States they decreased by 7%. The largest share of deliveries came from phones from Nokia Corporation (28.5%) and Samsung (17.6%).

Strategy Analytics spokesman Tom Kang noted that the increase in sales was caused by a "wave" of low-cost models based on the Android platform produced by Chinese companies, as well as the growing availability of smartphones through retail channels.

Note that the center of world consumption is increasingly shifting from the United States to China every year. The Chinese economy, which is booming even in the most difficult crises, is stimulating income growth for the population, which is happy to buy more and more cars, equipment and other durable goods. A couple of years earlier, China took away the title of the largest car market from the United States, and this year - the title of the largest personal computer (PC) market.

Nokia 20% and LG 19% supply crash

Global shipments of mobile phones in the second quarter of 2011 increased by 11.3% compared to the same period in 2010 to 365.4 million units. Growth was lower compared to the expected 13.3%, reports. IDC

Smartphones continue to be the main driving force of the market, and the last quarter was no exception in this regard. According to IMS Research, the share of smartphones in the volume of deliveries will grow from 28% in 2011 to 50% in 2016.

In the second quarter of 2011, deliveries Nokia Corporation decreased by 20.3% to 88.5 million units, LG by 18.9% to 24.8 million devices. Deliveries Samsung rose 10% to 70.2 million. The highest growth rate showed. Apple According to, in the IDC period from April to June, the "apple" company delivered 20.3 million to the market, which turned out to iPhone be 141.8% more in comparison with the year to year. Thus, the growth rate was 12.5 times ahead of the market average. A year ago, the vendor occupied 2.6% of the market, now - 5.6% (fourth place).

In the first, second and third places are Nokia, Samsung and LG, respectively, with shares of 24.2%, 19.2% and 6.8% of the total supply. The Chinese company ZTE closes the top five with a market share of 4.5%.

In Q2 2011

Google Android - 48% of the global market by smartphones volume of supplies. 51.9 million mobile devices using this platform were sent to sales channels, which is 379% more compared to the same period in 2010, reports. Canalys For comparison, shipments of smartphones on platforms of all types over the same period increased by 73% to 107.7 million units.

Android is the most popular platform in 35 of the 56 countries reviewed by analysts. The platform demonstrates especially high performance in countries of the Asia-Pacific region, such as South Korea and Taiwan, in which its share is 85% and 71% of all delivered smartphones to the market, respectively. Android is the main driver of the global smartphone market and, as a result, the mobile terminal market as a whole. In the IV quarter, it also ranked first, but with a smaller share.

iOS (Apple) - 19% of the global smartphone market (20.3 million iPhones). It is worth remembering that the iPhone produces only Apple, while Android smartphones are a number of manufacturers.

"The iPhone allowed Apple to achieve phenomenal success and played a historic role in the market," said Canalys senior analyst Chris Jones. - This is an impressive example, especially if you consider that the company has been on the market for only the fourth year. With the alleged release of the new iPhone in the third quarter, Apple's positions in the second half of 2011 are likely to become even stronger. "

Symbian is in third place in terms of market share. However, analysts do not indicate the exact size of Symbian's share in their published document.

BlackBerry - smartphone shipments grew 11% year-on-year. However, this was not enough to maintain the previous market share, which decreased from 33% in the second quarter of 2010 to only 12%. The loss of the market is mainly due to the fact that this platform, primarily focused on the corporate segment, shows a very restrained growth rate.

Windows Phone - In the period from April to June, about 1.5 million smartphones based on Windows Phone were also released, which corresponds to a market share of 1%. Compared to the same period in 2010, shipments of devices with operating systems from Microsoft fell by a total of 52%, Canalys summarizes. According to the company's analysts, Microsoft partners should not hesitate to update their lines and it is necessary to present new items as soon as possible. But perhaps the strongest driver of Windows Phone could be Nokia Corporation. Much will depend on when the company releases the first devices, the later - the harder it will be to conquer the Microsoft market, the harder Nokia will be to get on its feet, experts say.

Bada - Canalys highlighted Samsung's success. According to analysts, in the second quarter of 2011, the Korean vendor increased smartphone shipments by 421% year-on-year, in which his own Bada platform played an important role - its growth was 355%. Samsung is the largest supplier of smartphones on the Android platform, the supply of which of these devices during the specified period reached 17 million units.

Apple bypasses Nokia in the touchscreen smartphone market

In July 2011, it became known that the Finnish Nokia Corporation, which released the world's first smart phone in 1996 and has since been the permanent leader in this market, lost ground. The first was the American Apple - in the second quarter it sold smartphones the most in the world^[40].

In the second quarter of 2011 Nokia , she sold 16.7 million smartphones, and Apple - 3.64 million more. Its revenue amounted to 9.2 billion euros - 11% less than a quarter earlier, operating losses - 487 million euros. The CEO of the Finnish company Stephen Elop called these results "obviously disappointing": "The difficulties on the path of strategic transformation were more significant than expected."

The strategic transformation is a plan announced by Elop in February 2011 to stop using smart phones operating system Symbian and eventually switch to WindowsPhone 7 from. Microsoft Buyers lost interest in phones with a "dead end" operating system: in the second quarter, sales fell by a third compared to the first quarter.

The result - Nokia has lost its leadership in the market, which it itself invented. In 1996, she released the world's first smartphone Nokia 9000 Communicator. No phone manufacturer has been able to catch up with the Finnish company so far. But it was managed by computer manufacturers from Apple. They released the iPhone in 2007, the world's first mainstream touchscreen smartphone, and on average double its sales every year. In the second quarter, Apple sold 20.34 million iPhones. According to The Guardian, referring to experts, the Finnish company lost in sales of smartphones and Korean Samsung (the latter will report for the second quarter next week). The weak consolation for Nokia was also the gain in the court, which ordered Apple to pay the Finns 430 million euros for the use of their technologies.

In 2003, then Nokia CEO Jorma Ollila said in an interview that he was ready to compete in the smart phone market with computer companies: Nokia's experience would make phones with an understandable interface easy to use.

Nokia did not guess where the smartphone market was going, Yevgeny Chichvarkin, founder of Russia's largest network of cellular salons Euroset, is sure.

"They decided that they are market leaders and the rest should follow them, no matter what they do," Chichvarkin says. He cites the example of another manufacturer of cell phones - Samsung, which successfully produces smartphones and generally "sits on Apple's tail." Nokia has missed out on the touchscreen smartphone market, said Eldar Murtazin, a leading analyst at Mobile Research Group.

However, Nokia shareholders were not very upset. On July 21, 2011, at the beginning of the trading session on the NYSE, depositary receipts of the Finnish company rose in price by 3%.

Nokia is doing well in Russia. According to Euroset, 8.9 million Nokia smartphones were sold here in the first half of the year (22% of global sales), and the iPhone is an order of magnitude less, only 0.8 million.

2010:74% increase in smartphone shipments, Nokia is the leader

In 2010, 302.6 million smartphones were delivered to the global market, compared with 173.5 million in 2009. In comparison, deliveries increased by 74.4% year-on-year, IDC reports. By comparison, shipments of mobile phones of all types, including smartphones, rose 18.5% to 1.4 billion units.

According to IDC, Nokia Corporation retained its place as the largest smartphone manufacturer in 2010. In twelve months, it delivered 100.3 million devices, taking 33.1% of the market. Nokia smartphone shipments rose 48.2%.

Canadian company Research In Motion, maker of BlackBerry smartphones, is in second place with a market share of 16.1%. At the end of the year, it released half as many smartphones as Nokia - 48.8 million units. BlackBerry shipments rose 41.4%.

The third place was taken, Apple which came close to RIM. In 2010, the company released only 1.3 million fewer smartphones than its closest competitor in the top line, taking 15.7% of the global market. Deliveries iPhone rose 89.2%.

Deliveries of Top 5 smartphone manufacturers in 2010 (million units)

Company	Deliveries in 2010	Market Share in 2010	Deliveries in 2009	Market Share in 2009	Supply growth year-on-year
Nokia	100,3  | 33,1 %	67,7  | 39,0 %  | 48,2 %
RIM	48,8  | 16,1 %	34,5  | 19,9 %  | 41,4 %
Apple	47,5  | 15,7 %	25,1  | 14,5 %  | 89,2 %
Samsung	23,0  | 7,6 %	5,5  | 3,2 %  | 318,2 %
HTC	21,5  | 7,1 %	8,1  | 4,7 %  | 165,4 %
Other	61,5  | 20,3 %	32,6  | 18,8 %  | 88,7 %
In total	302,6  | 100,0 %	173,5  | 100,0 %  | 74,4 %

Source: IDC

The IDC data is the same as the previously published results of Strategy Analytics calculations. According to analysts of this company, in 2010, Nokia (34.2%), RIM (16.7%) and Apple (16.2%) formed the top three smartphone manufacturers in the world.

2009: 2x Sales Growth of Touch Smartphones

Total sales smartphones in 2009, according to data, in Canalys 2009 reached 166 million units. Including 75.9 million smartphones with a touch screen were sold in the world, about 2 times more compared to 36.3 million devices sold in 2008.

Shares of touchscreen smartphone suppliers

• Apple - 33,1%. In total, the company sold 25.1 million smartphones.
• Nokia Corporation - 29.5% (22.4 million touch smartphones)
• HTC - 10,2%
• Samsung - 6,4%.

Sales of smartphones with a touch screen in 2009 grew the most at Nokia - and by a giant margin from other players, including Apple. In 2008, Nokia sold only 536 thousand such devices against 22.4 million last year, thus, the growth for the year was 42 times or 4070.8%. The growth in shipments of Nokia touch-screen smartphones is mainly fueled by the Nokia 5800 and Nokia N97, part of the high-tech Nseries line. The company has a powerful distribution system, a recognizable brand and has loyal buyers - all this allowed the company to win back positions under a serious onslaught of new competitors.

According to data, Canalys sales smartphones on the base operating system Android in 2009 increased by 1073.5% or almost 12 times compared to 2008 - in 2008 such devices were sold 663.6 thousand, and in 2009 - already 7.8 million. Nevertheless, in the overall standings, Android ranks fifth with a share of the total supply of 4.7%.

The Symbian operating system retained undisputed leadership in the market by more than two times the margin from the nearest competitor - in total, 78.5 million devices based on it were sold in the world in 2009, 47.2% of total sales. Second place - BlackBerry OS (20.8%), third - iPhone OS (15.1%), fourth - Windows Mobile (8.8%). The latter, in addition, is the only one in the top five who showed negative dynamics - the demand for devices with Windows Mobile for the year decreased by 26.4%.

The most reliable smartphones

• Reliable smartphones

Notes