Worldwide Smartphone Shipments Down For First Time Ever (theregister.co.uk)

According to Gartner, global sales of smartphones have declined year-on-year for the first time since the research company started tracking the global smartphone market in 2004. "Global sales of smartphones to end users totaled nearly 408 million units in the fourth quarter of 2017, a 5.6 percent decline over the fourth quarter of 2016," reports Gartner. The Register reports: In Gartner's Q4 sales stats, Samsung maintained a narrow lead in global volume shipments of smartphones -- but every major (top five) vendor outside of those based in China saw unit shipments slip. Several major factors caused the market shrinkage, said Anshul Gupta, research director at Gartner. "First, upgrades from feature phones to smartphones have slowed right down due to a lack of quality 'ultra-low-cost' smartphones and users preferring to buy quality feature phones. Second, replacement smartphone users are choosing quality models and keeping them longer, lengthening the replacement cycle of smartphones. Moreover, while demand for high quality, 4G connectivity and better camera features remained strong, high expectations and few incremental benefits during replacement weakened smartphone sales," Gupta added. This is a characteristic of the emerging markets, where all the action is -- not mature markets like the UK or USA. Samsung leap-frogged Apple by virtue of its sales declining slower than the market average -- Sammy's numbers were 3.6 per cent to 74.02 million units.

Comments

Re:New phones...

[Tony Isaac]

Ironically, it's the less expensive phones that are NOT getting rid of useful features like SD slot, headphone jack, and user replaceable batteries. It's just the top-of-the-line phones that ditched these features.

idiots with ties

[Tom]

Several major factors caused the market shrinkage

So you are selling around 400 million devices every quarter, that is 1.6 billion a year, and you are surprised that doesn't go on forever?

Smartphone users total only about twice that. So the average one buys a new smartphone every two years. That sounds about right, doesn't it?

Even in the USA, smartphone usage is only about 77% of the population. Some people still don't have one, and some are too young, too imprisoned or otherwise incapable (I don't count "too poor" anymore, as even if you are very poor, a smartphone has become a necessity).

"market shrinkage" my ass. The market is still growing (see the link above). You've just saturated it and most sales go not to new owners but to people replacing an existing phone.