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Global sales of smartphones to end users returned to growth in the first quarter of 2018 with a 1.3% increase over the same period in 2017, according to research and advisory firm, Gartner.

Compared to the first quarter of 2017 sales of total mobile phones stalled and reached 455 million units in the first quarter of 2018.

Nearly 384 million smartphones were sold in the first quarter of 2018, representing 84% of total mobile phones sold, Gartner said.

“Demand for premium and high-end smartphones continued to suffer due to marginal incremental benefits during upgrade,” said Anshul Gupta, research director at Gartner.

“Demand for entry-level smartphones (sub-$100) and low mid-tier smartphones (sub-$150) improved due to better-quality models.”

Continued weakness in Greater China’s mobile phone market also limited growth potential for the top global brands, including Chinese brands such as OPPO and Vivo, with over 70% of their sales coming from Greater China.

Samsung’s mid-tier smartphones faced continued competition from Chinese brands, which led to unit sales contraction year on year, Gartner said.

This is despite the earlier launch of its flagship Galaxy S9/S9+ compared to the S8/S8+ in 2017, and despite the Note 8 having a positive impact on Samsung sales in the first quarter of 2018.

Samsung’s smartphone growth rate will remain under pressure through 2018, with Chinese brand’s growing dominance and expansion into Europe and Latin America markets.

Samsung is challenged to raise the average selling price (ASP) of its smartphones, while facing increasing competition from Chinese brands that are taking more market share, the advisory service said.

The delayed sales boost for Apple from last quarter materialised. Apple’s smartphone unit sales returned to growth in the first quarter of 2018, with an increase of 4% year on year, it noted.

“Even though demand for Apple’s iPhone X exceeded that of iPhone 8 and iPhone 8 Plus, the vendor struggled to drive significant smartphone replacements, which led to slower-than-expected growth in the first quarter of 2018,” said Gupta.

“With its exclusive focus on premium smartphones, Apple needs to significantly raise the overall experience of its next-generation iPhones to trigger replacements and lead to solid growth in the near future.”

Samsung recorded a year-on-year unit decline of 3.6% in the fourth quarter of 2017, however, it retained its number-one global smartphone vendor position, ahead of Apple.

Huawei’s refreshed smartphone portfolio helped strengthen its No. 3 global smartphone vendor position, Gartner said.

“Achieving 18.3% growth in the first quarter of 2018 helped Huawei close the gap with Apple,” said Gupta. “However, its future growth increasingly depends on the vendor ramping up share in Emerging Asia/Pacific and resolving issues in the US market, through the development of a stronger consumer brand.

“Huawei’s attempt to grow its premium smartphone portfolio with its recent launches of the P20, P20 Pro and Honor 10 helps raise its competitiveness and growth potential.”

Xiaomi was the clear winner of the first quarter, achieving a growth of 124% year on year, Gartner said. Xiaomi’s refreshed portfolio of smartphones and aggressive pricing strategy helped it hold the No. 4 spot in the first quarter of 2018.

“This strategy led Xiaomi to achieve 330% growth in the Emerging Asia/Pacific region,” said Gupta.

Global smartphone sales to end users by vendor in 1Q18 (Thousands of Units)

Vendor 1Q18 Units 1Q18 Market Share 1Q17 Market Share
Samsung 78 564.8 20.5% 20.8%
Apple 54 058.9 14.1% 13.7%
Huawei 40 426.7 10.5% 9.0%
Xiaomi 28 498.2 7.4% 3.4%
Oppo 28 173.1 7.3% 8.2%
Others 153 782.1 40.1% 44.9%
Total 383 503.9 100% 100%

Read: What you can expect from your smartphone by 2020

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