The smartphone market suffers historical decline

Worldwide shipments of smartphones decreased by 9 percent from 438.7 million units in the fourth quarter of 2016 to 400.2 million in the same period of 2017. This is revealed by a study conducted by the research company Strategy Analytics points out that this decrease was mainly caused by a collapse in the Chinese market, where demand fell by 16 percent.

It is the biggest annual decline in smartphone history, according to Linda Sui, director of Strategy Analytics. The expert assures that the paralysis of the Chinese market is due, among other reasons, to the establishment of longer replacement rates, the reduction of subsidies to operators and the little creation of phone models that generate a ‘wow’ effect.

The study highlights the decrease in the sale of iPhone units, which fell by one percent, going from 77,316 million smartphones worldwide in the fourth quarter of 2017, compared to 78.3 million in 2016.

“We note that iPhone global volumes have declined annually in five of the last 8 quarters. If Apple wants to expand shipping volumes in the future, it will have to launch a new wave of cheaper iPhones and start pushing down, not up, the price curve, “said Neil Mawston, CEO of Strategy Analytics, according to publishes Business Wire.

Apple’s iPhone X has sold fewer units than its predecessors and the company has already announced that it will halve its smartphone production target in the first quarter to some 20 million units. The high price of the telephone, which costs 999 dollars (in Colombia around 5 million pesos) is, according to specialists, one of the main reasons for the low reception of users. In fact, the analyst of KGI Securities, Ming-Chi Kuo, recognized for correcting his predictions about the company of the apple, had reduced by about 23 percent his initial projection for shipments of the iPhone X, as a result of the weak demand in China.

Leave a Reply