Demand for 4G Smartphones in Emerging Markets Spurred Growth in 2Q17

Global sales of smartphones to end users totaled 366.2 million units in the second quarter of 2017, a 6.7 percent increase over the second quarter of 2016, according to Gartner. In the smartphone operating system market, Android extended its lead with 87.7 percent market share, while iOS accounted for 12.1 percent.

"Although demand for utility smartphones remains strong, there is growing demand in emerging markets for 4G smartphones, with more storage, better processors and more advanced cameras. This is translating into higher demand for midpriced [$150 to $200] smartphones," said Anshul Gupta, research director at Gartner.

Sales of all types of smartphone grew in the second quarter of 2017, compared with the second quarter of 2016. However, there is a concern about rising component costs, as well as limited supply, due to the reduced availability of critical components.

Samsung's smartphone sales grew 7.5 percent, year over year, after three consecutive quarterly declines. The company had been hit hard by problems with the Galaxy Note 7, but the Galaxy S8 and S8+ are bringing back high demand for Samsung smartphones

Worldwide Smartphone Sales to End Users by Vendor in 2Q17 (Thousands of Units)

Source: Gartner

Despite clearing the distribution channel of iPhone inventory amounting to 3.3 million units during the second quarter, Apple's sales were flat (down 0.2 percent), year over year.

Vivo and Oppo achieved the best performances in the second quarter of 2017, with year-over-year sales increases of 70.8 percent and 44.1 percent, respectively. Vivo's smartphones with front-facing cameras have carved out a niche for themselvesOppo secured its leading position in China by offering dual rear-facing and front-facing cameras.

Greater China and emerging Asia/Pacific markets drove sales of smartphones in the second quarter of 2017, with market shares of (27.7 percent) and (21.4 percent), respectively. Growing smartphone penetration of India, Indonesia and Southeast Asian countries drove a year-over-year rise in smartphone sales in the emerging Asia/Pacific group.

However, smartphone sales in Greater China declined, year over year, primarily due to longer replacement cycles and as users prefer to buy better smartphones. Sales in Western Europe returned to year-over-year growth, fueled especially by strong sales of Huawei and Samsung smartphones.

Top-Five Regions for Smartphone Sales to End Users in 2Q17 (Thousands of Units)

Source: Gartner