Gartner Announces Global Sales Increased 3.9% in Q1 2016
Apple records first-ever double-digit decline

Gartner Inc. announced that global smartphone sales to end users totaled 349 million units during the first quarter of 2016, a 3.9% increase from the first quarter of 2015. Smartphone sales accounted for 78% of total mobile phone sales in the first quarter of 2016.

Demand for low-cost smartphones in emerging markets drove smartphone sales, and for low-cost 4G smartphones, it was assessed that 4G promotions by Communication Service Providers (CSPs) in many markets around the world were effective.



"In a slowing smartphone market where major players are experiencing growth saturation, emerging vendors are increasing their market share by disrupting the long-standing business models of established vendors," said Anshul Gupta, Research Director at Gartner. "Amid these shifting dynamics in the smartphone market, Chinese brands are emerging as the world's largest brands. In the first quarter of 2015, two Chinese brands were included among the world's top five smartphone manufacturers, accounting for 11% of the total market." "In the first quarter of 2016, three Chinese companies, including Huawei, Oppo, and Xiaomi, were included and accounted for 17% of the market," it was stated.

Oppo achieved record performance in the first quarter and rose to fourth place, driven by a 145% year-over-year increase in sales volume. Like Huawei and Xiaomi, Oppo demonstrated strong growth in China, encroaching on the market share of companies such as Lenovo, Samsung, and Yulong. Huawei saw high smartphone demand in Europe, the Americas, and Africa, while Xiaomi and Oppo saw smartphone sales in the emerging Asia-Pacific region increase by 20% and 199%, respectively, year-over-year.


▲ Global End-User Sales by Smartphone Manufacturer, Q1 2016 (Unit: Thousand Units)

In the first quarter of 2016, Samsung surpassed Apple with a 23% market share, further strengthening its dominance. Gupta stated, "Samsung has solidified its position as a strong competitor in the smartphone market through its Galaxy S7 series smartphones and revamped portfolio, and the same is true in emerging markets where competition with local manufacturers is fierce."

Apple Explores Ways to Resell Used iPhones in Emerging Markets

Apple recorded a double-digit annual decline for the first time in history. Apple's 'Upgrade Program' in the U.S. helped boost sales in the U.S. by easing the price burden of its flagship products, the iPhone 6s and 6s models. Apple is exploring ways to resell used iPhones acquired through this program to emerging markets.

In the smartphone operating system (OS) market, Android regained market share surpassing iOS and Windows, recording an 84% market share (see Table 2). Roberta Cozza, Research Director at Gartner, stated, "The smartphone market in developed countries has reached saturation, and Google is pursuing new revenue growth opportunities by expanding the scope of its platform to automobiles, wearables, connected homes, and immersive experiences."


  ▲ Global Smartphone End-User Sales by Operating System, Q1 2016 (Unit: Thousand Units)

He added, “Despite the advancement of the Android platform and its dominant market share, many Android vendors continue to face the challenge of securing profitability. This will impact the competitive landscape among vendors, as new or more innovative business models are increasingly becoming the key to success.”

"Nokia's stated return to the smartphone and tablet market will not be easy. To sell devices in today's market, much more is required than just a well-known brand," Gupta said. "While manufacturing superior hardware may not be an issue for Nokia, users are demanding a clear reason to maintain loyalty to the same brand. Furthermore, as the smartphone market gradually slows down, it is difficult for mobile phone manufacturers to recover previous levels of growth. For HMD, a new entrant, entering a market that has passed its boom period has made it much more difficult to successfully enter the market in the short term," they stated.