Smartphone sales in Japan, Western Europe, and North America plummet
| 5G Smartphone Widespread Adoption Expected in Second Half of 2020
Huawei's position in China remains solid

Analysis suggests that while the outlook for smartphone sales in 2019 is bleak, the atmosphere will turn around in the second half of 2020 due to the full-scale launch of 5G smartphones.

Gartner announced its forecast for global smartphone sales in 2019.

According to Gartner, global consumer smartphone sales in 2019 are expected to reach 1.5 billion units, a 2.5% decrease from the previous year.

Gartner analysts expect smartphone sales to rise again in 2020, driven by the widespread availability of 5G models and aggressive 5G service package promotions by carriers worldwide.

In 2020, the release of Apple's first 5G iPhone was also expected to encourage iPhone users to upgrade their phones.

Annette Zimmermann, Senior Vice President of Research at Gartner, said, “Demand for smartphones decreased in the first half of 2019 as smartphone replacement cycles lengthened and it became difficult for Huawei to utilize technology from U.S. companies.”

He added, “As the benefits of replacing smartphones diminish and the overall pace of replacement gradually slows down, smartphone demand is expected to decrease further in the second half of the year.”

Vice President Zimmermann said, “Major smartphone manufacturers have started selling their first 5G smartphones, and carriers are providing 5G service packages at groundbreaking prices. “Although it has started, 5G smartphone sales in 2019 will be minimal,” he said, adding, “Sales are expected to increase starting in the second half of 2020 as the scope and availability of 5G hardware services improve.”

Gartner projected that sales of 5G smartphones would surpass 15 million units in 2019, which is less than 1% of total smartphone sales this year.

Smartphone sales in Japan, Western Europe, and North America in 2019 are expected to show the worst decline, falling by 6.5%, 5.3%, and 4.4%, respectively.

“Mature markets, particularly the high-end smartphone market, are oversupplied and saturated,” said Roberta Cozza, a principal researcher at Gartner. “The average selling price of products is high, and there are no new features or experiences to entice users to upgrade.”

He added, “The growth rate of the average selling price of high-end smartphones has recently slowed,” while explaining that “manufacturers that rely primarily on smartphone replacements continue to face difficulties.”

Gartner analysts expect overall smartphone sales to decline in the second half of 2019.Furthermore, it is expected that this trend will continue in the first half of 2020.

Vice President Zimmermann stated, “Although U.S. sanctions against Huawei have been partially eased, they have had a negative impact on the Huawei brand,” adding, “This could serve as an opportunity for other manufacturers in overseas markets, such as Western Europe.”

"It was added that 'although the U.S. administration has allowed U.S. suppliers to cooperate with Huawei, the situation remains uncertain,' and 'Huawei struggled in Europe, the Middle East, Africa, and South America towards the end of the second quarter of 2019, but maintained its lead in the Chinese domestic market.'"