Smartphone sales value sets new record
The first quarter of 2015 saw the value of global smartphone sales increase 8% year-on-year to reach a record $96 billion, according to GfK.
However, while unit demand was up 7% to 310 million, a slowdown in demand in China and developed Asian markets dragged down overall growth from 19% year-on-year in Q4 2014.
Smartphone sales value in Western Europe also declined on a year-on-year basis for the first time in Q1 2015, blamed on poorer sales in Spain and France. As smartphone penetration nears saturation point, both countries are expected to see a slowdown in smartphone unit growth this year compared to 2014.
“The weakness in China was caused by a significant slowdown in 3G demand, which was not offset by 4G growth,” said Kevin Walsh, director of trends and forecasting at GfK.
“We forecast China to return to growth in the second half of the year, driven by a continued 4G ramp-up.”
In Q1 2015, 4G unit share surpassed 50% of global smartphone demand for the first time, with China leading the charge.
Growth has been buoyed by the continued price erosion of 4G smartphones, with GfK forecasting global 4G share to increase further this year to reach 59%.
“GfK forecasts global smartphone unit demand to grow 10 per cent year-on-year in 2015, a slowdown from the 23 per cent growth experienced last year,” said Walsh.
“Emerging Asia is forecast to be the fastest growing region, driven by India and Indonesia, where low smartphone penetration leaves plenty of room for growth.”
Q1 2015 saw a continued shift towards larger screen sizes (5″+), where sales of 166 million units equated to 47% of the global smartphone market, up from 32% in Q1 2014.
GfK forecasts screen size migration to continue in 2015, with global demand for large screen devices increasing by 30% year-on-year to account for 69% of total smartphone unit demand this year.
In terms of pricing, low-end smartphones – those priced up to $250 – increased share to 56%, up from 52% in Q4 2014, at the expense of the high-end models ($500+), whilst mid-range ($250-500) share remained stable.
GfK forecasts low-end smartphones to gain further share in 2015, helped by continued price erosion in emerging markets.