gpolit.com
gpolit.com May 24, 2018


IPhone X Tops In The Second Consecutive Quarter

05 May 2018, 01:23 | Rudolph Thomas

Xiaomi sees massive growth in global smartphone shipments

The Performance Of The Cellphone Market And Future Outlook

Apple ranked second amid sales growth of 2.8% compared to past year. Outside of China, Huawei is gaining market share across the Western Europe region. Samsung's financial report in late April predicted a slowdown of premium smartphone sales, while a report on the iPhone X's sales at the tail end of 2017 stated that consumers preferred cheaper iPhones to Apple's latest, expensive flagship.

"More importantly, in a market as complex as China, where worldwide brands are finding it tough to combat native vendors in terms of volume, Apple has been beating local players by growing its ASP and building out other revenue streams from the Mac, App Store and accessories, effectively capitalising on its deep-pocketed installed base". Together, the three brands shipped over 10 million units in the quarter, outnumbering Lenovo-Motorola and ZTE. Xiaomi has captured the Indian and Chinese market through its high-volume sales channels and key retail partners.

The rest of the smartphone manufacturers around the globe like LG, Vivo, OnePlus, Google, etc., collectively lost market share big time.

Apple has also released healthy Q1 sales figures, but it now stocks nine iPhone models and sells more older handsets than ever before, something which could impact its balance sheet in the future. On the other hand, in high-growth markets, such as India and Brazil, vendors are struggling with low margins. Research analytics company Strategy Analytics has announced its quarterly list of the most-selling smartphone models in the world. Moreover, shipments of other new iPhone models could be disappointing, on the back of Apple's $50 price increase over the previous model, without any meaningful upgrade. The company regained its top spot from Apple in the quarter. "The city's red-hot IPO market usually sees offerings oversubscribed - sometimes by hundreds of times - as investors borrow heavily to place orders".

Overall, 334.3 million smartphones were shipped in Q1, a drop of 2.9% when compared to Q1 2017 when 344.4 million smartphones were shipped. The iPhone 7 also shipped 5.6 million units. The US component ban from the US government will take a toll on the company's smartphone shipments in the coming quarters. The Lenovo brand declined in India and in rest of APAC, while Motorola continued to do well in LATAM and U.S. smartphone markets. For example, some phones being launched in today's market feature RAM size similar to that of computers and the processors allow them to run at a snappy pace even while multitasking. OPPO is fifth-placed with 7.6-percent of the market, 5.1-percent less than in Q1 2017. Xiaomi shipped a total of 27 million smartphones in Q1 2018 and is growing in India.



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