Global smartphone sales were down in Q1 2018, but premium models boosted average prices
Rather than tracking the achievements of individual smartphone vendors or comparing mobile OS share numbers, Germany’s largest market research institute generally focuses on providing the most accurate and detailed view possible of global demand and revenue fluctuations.
GfK’s latest report highlights a two percent decline in worldwide smartphone sales during Q1, offset by an astonishing 21 percent ASP year-on-year surge. The average price of the only 347 million smartphone units sold between January and March 2018 was USD 374, generating an estimated $129.8 billion in revenue, up a similarly impressive 18 percent from Q1 2017’s total earnings for the “maturing industry.”
Granted, one the world’s most expensive mainstream handsets was not particularly successful this quarter, but other top brands also ramped up innovation and advertising in the high-end segment, which probably paid off on a wider scale than ever before.
Key regions that considerably boosted Q1 2018 ASPs and revenues included Western, Central and Eastern Europe, China, as well as both Developed and Emerging Asia territories. The biggest demand declines were reported in North America and China, while unit sales grew 5 and 3 percent year-on-year in Central and Eastern Europe and Latin America respectively.
Looking ahead, GfK’s analysts, which by the way use actual end-demand consumer purchases data instead of manufacturer shipments, expect smartphone demand to continue to shrink across North America, China and Developed Asia, with full-year sales growth projected in Central and Eastern Europe, Latin America, Middle East and Africa, and the Emerging Asia region.