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Global shipment of smartphones fell 5 per cent in the first quarter of calendar year 2019, compared with the same period a year ago, making it the sixth consecutive quarter of decline.
Only Chinese brands Huawei, OPPO, and Vivo were able to register a growth during the reporting quarter.
In the coming quarters, the decline in the smartphone segment is expected to soften with the improving Chinese economy, a report from Counterpoint Research said.
“The global smartphone market showed no signs of recovery in Q1 2019. The rate of decline came down, particularly in February, due to inventory correction by some brands and the production halt during the Chinese New Year. Another reason for the decline is lengthening replacement cycles, especially in the premium segment,” Tarun Pathak, Associate Director at Counterpoint Research, said.
Read more:Xiaomi remains market leader in smartphone market in first quarter
“The replacement rate for iPhones is reaching close to 36 months, while the replacement rate for premium Android devices is closing in at 30 months. This can be attributed to the higher quality of devices, increasing average selling price and the lack of innovative technology,” he added.
Mixed performances
Samsung recorded an increase in revenue, as Galaxy S10 flagship smartphones did better than Galaxy S9 at the time of launch.
The brand is restructuring its smartphone line-up by launching new M series and A series models.
Apple iPhone shipments declined year-over-year for the second consecutive quarter. The growth potential for premium products may be difficult in the coming quarters.
Xiaomi’s smartphone shipments declined annually, as it faces competition in the home market. Though the brand continues to do well in India, the foray into new markets will help offset the decline in the home market. All the brands of the BBK Group (which owns OPPO, Realme, Vivo and OnePlus) registered growth during the quarter.
Huawei records growth
During the reporting period, Huawei’s share in the global smartphone market reached its highest level of 17 per cent, overtaking Apple as the second-largest selling smartphone brand. Huawei’s volumes rose nearly 50 per cent year on year.
“Huawei became the second largest smartphone brand by shipment without a significant presence in an important market like the US. It was also the fastest growing brand among the top 10. At this pace, we expect Huawei to remain ahead of Apple at the end of 2019,” Shobhit Srivastava, Analyst, Counterpoint Research, said.
“What has helped Huawei is the pace of its innovations. It was the first to introduce features like reverse wireless charging, on-board AI, and more. A dual-brand (Honor) strategy has helped Huawei gain market share in a sluggish Chinese market,” he said.
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