Gartner Says Global Smartphone Sales Stalled in the Fourth Quarter of 2018
Announcement posted by Gartner 22 Feb 2019
Apple Suffered Worst Quarterly Decline Since First Quarter of 2016
Global sales of smartphones to end users stalled in the fourth quarter of 2018, totaling 408.4 million units — growth of just 0.1 percent over the fourth quarter of 2017, according to Gartner, Inc. Apple recorded its worst quarterly decline (11.8 percent) since the first quarter of 2016.
“Demand for entry-level and midprice smartphones remained strong across markets, but demand for high-end smartphones continued to slow in the fourth quarter of 2018,” said , senior research director at Gartner. “Slowing incremental innovation at the high end, coupled with price increases, deterred replacement decisions for high-end smartphones. This led to a flat-growth market in the fourth quarter of 2018 (see Table 1).”
Table 1: Worldwide Smartphone Sales to End Users by Vendor in 4Q18 (Thousands of Units)
Due to rounding, numbers may not add up precisely to the totals shown
Source: Gartner (February 2019)
Apple Experienced Biggest Decline Among the Top Five Smartphone Vendors
Sales of Apple iPhones hit 64.5 million units in the fourth quarter of 2018, a decline of 11.8 percent year over year. This double-digit decline made Apple experience the biggest decline for the quarter among the top five global smartphone vendors. Apple saw iPhone demand weaken in most regions, except North America and mature Asia/Pacific. Apple’s sales declined most in Greater China, where its market share dropped to 8.8 percent in the fourth quarter of 2018 from 14.6 percent in the corresponding quarter of 2017. For 2018 as a whole, iPhone sales were down 2.7 percent, to just over 209 million units.
“Apple has to deal not only with buyers delaying upgrades as they wait for more innovative smartphones, but it also continues to face compelling high-price and midprice smartphone alternatives from Chinese vendors. Both these challenges limit Apple’s unit sales growth prospects,” added Mr. Gupta.
At the high end, Samsung smartphones such as the Galaxy S9, S9+ and Note9 struggled to drive growth in the fourth quarter of 2018. In the midtier, Xiaomi and Huawei continued to grab more market share. As a result, Samsung’s smartphone sales declined by 4.4 percent in the fourth quarter of 2018. Samsung lost market share in Greater China, Western Europe and Latin America, which contributed greatly to an overall 8.2 percent fall in its smartphone sales in 2018.
“Although Samsung is strengthening its smartphone offering at the midtier, it continues to face growing competition from Chinese brands that are expanding into more markets. It also faces difficulty bringing significant innovation to high-end smartphones,” said Mr. Gupta. “Samsung introduced new midtier-focused M series smartphones in the first quarter of 2019 to compete with aggressive Chinese manufacturers in emerging markets, and to expand into the online sales channel.”
2018 — the Year of Huawei
In the fourth quarter of 2018 Huawei sold over 60 million smartphones and achieved the strongest growth of the quarter among the top five global smartphone vendors (37.6 percent). Huawei grew throughout 2018, to close the gap with Apple. “Beyond its strongholds of China and Europe, Huawei continued to increase its investment in Asia/Pacific, Latin America and the Middle East, to drive further growth,” said Mr. Gupta. “Huawei also exploited growth opportunities through continued expansion of the Honor series in the second half of 2018, especially in emerging markets, which helped Huawei grow its market share to 13.0 percent in 2018.”
In 2018 as a whole, global sales of smartphones to end users grew 1.2 percent year over year, to 1.6 billion units (see Table 2). North America, mature Asia/Pacific and Greater China recorded the worst declines, at 6.8 percent, 3.4 percent and 3.0 percent, respectively. “In mature markets, demand for smartphones largely relies on the appeal of flagship smartphones from the top three brands — Samsung, Apple and Huawei — and two of them recorded declines in 2018,” said Mr. Gupta.
Table 2: Worldwide Smartphone Sales to End Users by Vendor in 2018 (Thousands of Units)
Due to rounding, numbers may not add up precisely to the totals shown
Source: Gartner (February 2019)
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“Demand for entry-level and midprice smartphones remained strong across markets, but demand for high-end smartphones continued to slow in the fourth quarter of 2018,” said , senior research director at Gartner. “Slowing incremental innovation at the high end, coupled with price increases, deterred replacement decisions for high-end smartphones. This led to a flat-growth market in the fourth quarter of 2018 (see Table 1).”
Table 1: Worldwide Smartphone Sales to End Users by Vendor in 4Q18 (Thousands of Units)
| Vendor | 4Q18 Units | 4Q18 Market Share (%) | 4Q17 Units | 4Q17 Market Share (%) |
| Samsung | 70,782.5 | 17.3 | 74,026.6 | 18.2 |
| Apple | 64,527.8 | 15.8 | 73,175.2 | 17.9 |
| Huawei | 60,409.8 | 14.8 | 43,887.0 | 10.8 |
| OPPO | 31,589.9 | 7.7 | 25,660.1 | 6.3 |
| Xiaomi | 27,843.6 | 6.8 | 28,187.8 | 6.9 |
| Others | 153,205.0 | 37.5 | 162,908.8 | 39.9 |
| Total | 408,358.5 | 100.0 | 407,845.4 | 100.0 |
Source: Gartner (February 2019)
Apple Experienced Biggest Decline Among the Top Five Smartphone Vendors
Sales of Apple iPhones hit 64.5 million units in the fourth quarter of 2018, a decline of 11.8 percent year over year. This double-digit decline made Apple experience the biggest decline for the quarter among the top five global smartphone vendors. Apple saw iPhone demand weaken in most regions, except North America and mature Asia/Pacific. Apple’s sales declined most in Greater China, where its market share dropped to 8.8 percent in the fourth quarter of 2018 from 14.6 percent in the corresponding quarter of 2017. For 2018 as a whole, iPhone sales were down 2.7 percent, to just over 209 million units.
“Apple has to deal not only with buyers delaying upgrades as they wait for more innovative smartphones, but it also continues to face compelling high-price and midprice smartphone alternatives from Chinese vendors. Both these challenges limit Apple’s unit sales growth prospects,” added Mr. Gupta.
At the high end, Samsung smartphones such as the Galaxy S9, S9+ and Note9 struggled to drive growth in the fourth quarter of 2018. In the midtier, Xiaomi and Huawei continued to grab more market share. As a result, Samsung’s smartphone sales declined by 4.4 percent in the fourth quarter of 2018. Samsung lost market share in Greater China, Western Europe and Latin America, which contributed greatly to an overall 8.2 percent fall in its smartphone sales in 2018.
“Although Samsung is strengthening its smartphone offering at the midtier, it continues to face growing competition from Chinese brands that are expanding into more markets. It also faces difficulty bringing significant innovation to high-end smartphones,” said Mr. Gupta. “Samsung introduced new midtier-focused M series smartphones in the first quarter of 2019 to compete with aggressive Chinese manufacturers in emerging markets, and to expand into the online sales channel.”
2018 — the Year of Huawei
In the fourth quarter of 2018 Huawei sold over 60 million smartphones and achieved the strongest growth of the quarter among the top five global smartphone vendors (37.6 percent). Huawei grew throughout 2018, to close the gap with Apple. “Beyond its strongholds of China and Europe, Huawei continued to increase its investment in Asia/Pacific, Latin America and the Middle East, to drive further growth,” said Mr. Gupta. “Huawei also exploited growth opportunities through continued expansion of the Honor series in the second half of 2018, especially in emerging markets, which helped Huawei grow its market share to 13.0 percent in 2018.”
In 2018 as a whole, global sales of smartphones to end users grew 1.2 percent year over year, to 1.6 billion units (see Table 2). North America, mature Asia/Pacific and Greater China recorded the worst declines, at 6.8 percent, 3.4 percent and 3.0 percent, respectively. “In mature markets, demand for smartphones largely relies on the appeal of flagship smartphones from the top three brands — Samsung, Apple and Huawei — and two of them recorded declines in 2018,” said Mr. Gupta.
Table 2: Worldwide Smartphone Sales to End Users by Vendor in 2018 (Thousands of Units)
| Vendor | 2018 Units | 2018 Market Share (%) | 2017 Units | 2017 Market Share (%) |
| Samsung | 295,043.7 | 19.0 | 321,263.3 | 20.9 |
| Apple | 209,048.4 | 13.4 | 214,924.4 | 14.0 |
| Huawei | 202,901.4 | 13.0 | 150,534.3 | 9.8 |
| Xiaomi | 122,387.0 | 7.9 | 88,926.8 | 5.8 |
| OPPO | 118,837.5 | 7.6 | 112,124.0 | 7.3 |
| Others | 607,049.0 | 39.0 | 648,762.7 | 42.2 |
| Total | 1,555,267.0 | 100.0 | 1,536,535.5 | 100.0 |
Source: Gartner (February 2019)
Further information is available to Gartner clients in the report titled “Market Share: PCs, Ultramobiles and Mobile Phones, All Countries, 4Q18 Update.”
About GartnerGartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organisations of tomorrow. Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organisations in more than 100 countries — across all major functions, in every industry and enterprise size.
To learn more about how we help decision makers fuel the future of business, visit gartner.com.