MWC 2019: Global Smartphone Sales Reached $522 Billion in 2018

Claiming a 44 percent share smartphones, mobile phones and wearables are still the powerhouse in the $1.2 trillion technical consumer goods market, according to GfK. Although global smartphone demand declined three percent in 2018 to 1.44 billion, sales remain strong and reached $522 billion.

Global smartphone sales remained strong in 2018 as the premium trend continues to fuel growth. In figures this equates to an increase of five percent. However, the demand for smartphones in 2018 declined by three percent to 1.44 billion units sold worldwide versus 2017. This is expected to grow plus one percent in 2019. The figures for Q4 2018 reveal a similar trend. Around 375 million smartphones (down seven percent) were sold worldwide year-on-year with a sales value of $144 billion.

Around twelve percent (up from nine percent in 2017) of smartphones sold were priced at more than $800 in 2018. The mid-segment of $150-400 continues to be an important competitive battleground accounting for 46 percent of smartphones sold globally in 2018 (up two percent from 44 percent in 2017). Although a somewhat tough comparison with a strong Q4 2017, from October to December 2018, the dearth of appealing innovation continued prolonging replacement cycles and putting average selling price under pressure. As a result, ASP declined two percent to an average of $384.

GfK’s Consumer Life Study shows that consumer trends are changing when it comes to possessions. Not only do they “prefer to own fewer but higher quality items“ that they will pay premium prices for, but they “value experiences more than possessions“. Whether it is memory size, larger screen size or a multiple high megapixel camera this innovation does not ignite consumers’ imagination and stimulate demand.

Core wearables remained on a strong growth path in 2018, with year-on-year demand up 16 percent and sales value up 35 percent. Demand was driven by the rise of SIM-enabled smartwatches which represent the majority of sales value within the Core wearables category. SIM-enabled smartwatches accounted for 17 percent of the Core wearables sales value, up from eight percent in 2017.

The Chinese market consumes the majority of the global smartphone production, as well as being the home of local brands that are becoming increasingly global. 40 percent of the Chinese brands' smartphone production in 2018 was purchased outside of China, that is up from 31 percent in 2016. The continued demand in Emerging Asia (plus 13 percent year-on-year) and Central & Eastern Europe (plus three percent year-on-year) only partially offset the decline in China in 4Q18.