Emerging Markets Spur Smartphone Sales Growth - Report

According to the latest analysis of global smartphone sales by Gartner, the demand for 4G smartphones in emerging markets has spurred growth in the second quarter of 2017.

Gartner says global sales of smartphones to end users totalled 366.2 million units in the second quarter of 2017, a 6.7% increase compared to the same period last year, according to Gartner.

In the smartphone operating system market, Android extended its lead with 87.7% market share, while iOS accounted for 12.1%.

Overall, Gartner says sales of all types of smartphones grew in the second quarter of 2017, compared with the second quarter of 2016. However, a shortage of components is expected to affect sales of premium smartphones in the second half of the year. There is a concern about rising component costs, as well as limited supply, due to the reduced availability of critical components.

"We expect a shortage of flash memory and OLED (organic light-emitting diode) displays will affect premium smartphone supply in the second half of 2017," says Anshul Gupta, research director at Gartner.

Gupta adds that "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 mid-priced [$150 to $200] smartphones."

Samsung's smartphone sales grew 7.5%, year over year, after three consecutive quarterly declines. Vivo and Oppo achieved the best performances in the second quarter of 2017, with year-over-year sales increases of 70.8% and 44.1%, respectively.

"Vivo's smartphones with front-facing cameras have carved out a niche for themselves," notes Gartner. Gupta says, "Vivo maintained second place in China and grew its sales internationally." Similarly, Oppo secured its leading position in China by offering dual rear-facing and front-facing cameras.