Smartphone Demand Peaks Alongside a Leap in Average Sales Price in 2Q17

Global smartphone demand totaled 347 million units in 2Q17, up four percent year-on-year, according to GfK. This makes it the strongest second quarter on record.

Emerging Asia led the demand growth with a 13 percent year-on-year increase, followed by Central and Eastern Europe at 11 percent, and Latin America at 10 percent. Market value grew nine percent year-on-year, due to rising average sales price (ASP).

Smartphone demand in Western Europe totaled 28.7 million units in 2Q17, down three percent year-on-year. This is the third consecutive quarter of decline, caused by saturation in the largest markets, Germany, Great Britain and France. In these markets year-on-year demand fell -4 percent, -5 percent and -7 percent respectively. However, GfK expects major device launches in 4Q to help moderate full-year declines to -0.4 percent.

Central and Eastern Europe continues its recovery, with smartphone demand reaching 18.7 million units in 2Q17, up 11 percent year-on-year. As the political situation stablizes and consumer confidence recovers in Russia and the Ukraine, both markets have posted impressive year-on-year growth. In Russia, demand was up 11 percent year-on-year in 2Q17, and in the Ukraine it was up 22 percent. GfK raised its forecast for smartphone demand in the region slightly to 85.2 million in 2017, a rise of nine percent year-on-year.

In North America the market grew six percent year-on-year to 47.4 million units in 2Q, following falls in demand in the recent quarter. GfK forecasts smartphone demand in the region to total 203 million units in 2017, a rise of two percent year-on-year.

Smartphone demand in Latin America rose 10 percent year-on-year to 27 million units in 2Q17. In Middle East and Africa demand totaled 42.2 million units, up just one percent year-on-year. In China, smartphone demand plateaued in 2Q17 at 110.1 million units, showing no change year-on-year.

Overall smartphone demand in developed Asia totaled 16.1 million units in 2Q17, down three percent year-on-year. In the emerging Asia smartphone demand totaled 56.7 million units, up 13 percent year-on-year.