The global smartphone market remains on the slide, IDC reports-- Q4 2019 shipments total 375.4 million units, a -4.9% Y-o-Y drop making a challenging holiday season the 5th consecutive quarter of decline.
Smartphone shipments for full-year 2018 total 1.4 billion units, a -4.1% decline, leading the analyst to predict 2019 will see further decline. After all, outside of a handful of high-growth S. E. Asian markets, the world sees little of positive activity in 2018. A number of factors bring such a situation, including lengthening replacement cycles, increasing penetration levels in many large markets, political and economic uncertainty and growing consumer frustration over continuously rising price points.
China remains the focal point for the global smartphone industry. After all, the most populous country in the world is also the largest market for such devices, accounting for around 30% of smartphone consumption. It also had a worse 2018 compared to previous years, with shipments falling by "just over" -10%.
On a global basis, the top 5 smartphone markers account for 69% of 2018 shipments, up from 63% in 2017. However IDC points out vendors need to find an equilibrium balancing the latest features, compelling design and affordability, at least if they want to bring new life to the industry through upcoming 5G and foldable devices. The analyst expects such features will increase ASPs, since new displays, chipsets and radios, brng an increased BOM (bill of materials). As such, carriers and retailers need to fully maximise trade-in offers for older devices as a type of subsidy in order to push upgrades throughout 2019.
Samsung continues to lead the vendor rankings in Q4 2018, even if it sees shipments fall by -5.5% Y-o-Y to 70.4m units. It also sees market share drop to below 20% at 18.7%, just a few points above Apple and Huawei. Things are not much better for full year 2018, with shipments falling by -8% to 292.3m. Apple comes 2nd, with iPhone volumes falling by -11.5% Y-o-Y in Q4 2018 and by -3.2% for the full year, making 2018 one of the more challenging years for Apple in terms of growth.
The year is not all doom and gloom for some companies, though. For instance, 3rd placing Huawei capitalises on strong momentum in some markets to bring 43.9% Y-o-Y growth in Q4 2019. Full year 2018 shipments also impress with a 33.6% increase. China makes around 50% of the Huawei smartphone business, but the company is also pushing international success with growth in nearly every market it is present in.
Oppo finishes Q4 2018 in 4th position with full-year shipments reaching 113.1m, a 1.3% increase, thanks to success in India and Indonesia through the A-series device line. Xiaomi rounds out the top 5 with 2018 shipments reaching over 100m with 32.2% growth, the result of focus on India and Indonesia, as some W. European markets, most notably Spain.
