girl touching mobile resting on the sofa

If Gartner’s latest report on smartphones sales around the globe is to be believed, affordable Android smartphones and emerging markets like India and China have commanded the driving seat of growth in worldwide smartphone market. In third quarter of this year (2015) 353 million smartphones were sold worldwide, out of which 259.7 million were purchased in emerging markets like India and China. In short, 73% of worldwide smartphone sales in Q3 2015 came from emerging markets while overall sales grew by 15.5% in comparison to the same period of previous year (Q3 2014).

Android Smartphones

This makes sense, because as prices of smartphones are declining, people who would’ve bought a feature phone are increasingly becoming attracted towards smartphones. In last few years prices of budget smartphones have declined drastically. Gone are the days when budget smartphone market used to begin from the point of Rs. 10,000 INR. These days one can find good 4G LTE capable devices in 5k – 7k price bracket even, which makes upgrading from feature phones a lot easier.
This makes sense, because as prices of smartphones are declining, people who would’ve bought a feature phone are increasingly becoming attracted towards smartphones. In last few years prices of budget smartphones have declined drastically. Gone are the days when budget smartphone market used to begin from the point of Rs. 10,000 INR. These days one can find good 4G LTE capable devices in 5k – 7k price bracket even, which makes upgrading from feature phones a lot easier.

And as this shift is happening, smartphone majors are also moving back and forth from their positions. Samsung tried its best to stay on top in terms of growth by switching to a quicker than ever product release cycle – it refreshed its product lineup and included more budget devices than high-end devices. But despite all this it lost to Huawei, which grew its smartphone sales by 68% in comparison to same period of last year. Huawei’s sales didn’t grow in emerging markets only – it’s brand is growing rapidly and steadily in Europe too.

Another major development is entry of Micromax in the club of top 10 smartphone vendors worldwide. Chinese players like Xiaomi, ZTE and Oppo are also getting more aggressive with their sales strategy in emerging markets and their sales are rising.

When it comes to operating systems, it should be no surprise that Android continued to dominate worldwide smartphone market with an increase of 1.7% in its market share. With this increase Android’s share in global smartphone market has come to 84.7%. Next in the row is, of course, Apple’s iOS, with 13.1%.

However, Apple is still a leader in the market of premium smartphones – that’s a place where Apple’s dominance has almost always remained untouched, and it continues to be like that. Of course, that market isn’t as large as market of budget smartphones, but the profit margins there are large enough to sustain a healthy business. That’s why Google also seems to be planning something for its own premium Android devices. It shouldn’t come as a surprise if in next few years Google challenges Apple’s dominance in market of premium devices too.

LEAVE A REPLY