Global smartphone sales reached 397 million units in the fourth quarter, up 1 percent from the year before, according to the latest study from GfK. Demand was driven mainly by the Middle East and Africa, where sales jumped 8 percent, and Central & Eastern Europe, where they grew 7 percent. Meanwhile, the average price of smartphones worldwide (ASP) lifted 10 percent year-on-year to USD 363, its fastest quarterly growth rate to date, with people willing to pay more for larger phones and bezel-less displays. In 2017, sales went to 1.46 billion units, and generated USD 479 billion in revenue, according Telecompaper. For 2018, the outlook is positive, with demand set to rise by 3 percent year-on-year, pulled up by Emerging Asia and Central and Eastern Europe.
In Middle East and Africa, smartphone sales increased 8 percent to 46.2 million units, driven mainly by Egypt and Saudi Arabia. In Egypt, demand surged 28 percent while in Saudi Arabia, it jumped 24 percent. The sales value (price) in the region went up 3 percent. In 2017, smartphone sales strengthened 4 percent to 176.5 million units. For full year 2018, demand will rise by 5 percent (units), with the relatively low levels of smartphone penetration in the region leaving plenty of room for first-time buyers to enter the market.
For Central and Eastern Europe, demand continued to recover, with smartphone sales advancing 7 percent to 25.2 million and the sales value leaping 28 percent. For 2017, sales rose 9 percent to 85.2 million. For 2018, the forecast is for a 6 percent increase in demand, driven by Russia and Ukraine.
In China, smartphone demand was sluggish in Q4, with unit sales declining 3 percent to 114.7 million units, the first fall for the country in two and half years. The sales value however went up by 17 percent, as consumers continued to shift towards mid-range and high-end devices. For 2017, demand rose 1 percent to 454.4 million units, though the sales value soared 14 percent.
In Western Europe, smartphone demand fell 3 percent year-on-year to 37.0 million. That said, sales value (price) increased by 17 percent, driven particularly by 24 percent value growth in the UK and 19 percent value growth in France. For full year 2017, smartphone sales value went 5 percent higher to USD 56 billion. In unit terms, the market declined by 4 percent to 125.6 million. The outlook for the region in 2018 remains positive however, with demand expected to rise by 1 percent to 126.4 million units.
In North America, demand lifted 6 percent to 62 million units, the region’s highest growth in over two years. Sales value increased by 4 percent to USD 28.5 billion. As a result, sales in 2017 rose 2 percent to 201.3 million units. That said, the upturn is not expected to last, with the market seen flat for 2018.
Smartphone demand in Latin America continued to grow, pushed by a strong recovery in Brazil, with unit sales up 6 percent to 35.0 million units and sales value lifting 12 percent. For 2017, unit sales went 9 percent higher. Still, for 2018, growth will be moderate, at 2 percent, pulled down by a slower Brazil.
For Developed Asia, demand was pulled down by a 21 percent decline in South Korea. Sales for the region slid 9 percent to 18.5 million units. The sales value also declined, down 5 percent. For the full year, sales fell 6 percent to 68.5 million. For 2018, GfK is guiding for a return to growth, of 2 percent, driven primarily by improving conditions in Japan.
Finally, Emerging Asia suffered its first ever year-on-year decline in Q4, with sales off 1 percent to 58.6 million units. Sales in India pulled the total result down, going 3 percent lower, with a proliferation of low-priced 4G feature phones cannibalizing smartphone sales. Sales value however went up 14 percent. In 2017, 232.7 million smartphones were sold in the region, an increase of 8. For 2018, demand will improve to 9 percent.
