05 December 2019
A new report on the global sales of smartphones in Q3 2019 has come out from the research and advisory firm Gartner. According to the report, the global sales of smartphones declined by 0.4% in Q3 due to weak demand. However, Huawei was the only company in the top-five global smartphone vendor that managed to achieve double-digit growth in the sales in Q3, 2019.
The report has more key insights to put forward, with the most important one being the inclination of the interests of the users. The firm has analyzed that people were not budget-conscious in Q3 and rather concerned more about getting value for money.
It is observed that the users went on opting for midtier smartphones over premium-tier and least expensive ones. This got possible from the efforts of the top Chinese players, Huawei, Xiaomi, Oppo, and Vivo. These manufacturers made some appropriate steps to strengthen their presence in the market with the help of entry-level and midtier portfolios.
Anshul Gupta, Senior Research Director at Gartner said,
For the majority of smartphone users, desire has shifted away from owning the least expensive smartphone. Today’s smartphone user is opting for midtier smartphones over premium-tier ones because they offer better value for money.
But Apple iPhone sales continued to decline in Q3 2019. While Huawei sold 65.8M smartphones which is an increase of 26% year over year, Apple sales recorded a year-over-year decline of 10.7 percent. According to Gartner’s report, the continued sales promotion and discounts didn’t help Apple in building up some sales numbers against the Chinese vendors.
On the other hand, Samsung maintained the No. 1 position globally in the third quarter of 2019, by increasing its smartphone sales by 7.8%, year over year.
This clearly shows that the ban on Huawei to access key US technologies hasn’t affected its position in the market. It is its strong ecosystem in China that has helped it to gain some growth and make some great sales numbers over its competitors.
The report also states that users are delaying their purchase decisions until 2020 as they are waiting for the 5G network.
Gartner suggests that product managers should focus on offering attractive features at low prices as quickly as possible. And by offering better value for money, they can increase the demand and hence the sales of smartphones.