Global Smartphone Sales of $96bn Set a New Q1 Record as 4G Ramps Up

PR60501

NUREMBERG, Germany, May 15 / PRN=KYODO JBN / --

    - In Q1 2015 global smartphone sales value was up +8 percent year-on-year.

Sales of larger screen devices (5"+) continue to drive growth

    - Smartphone unit demand increased +7 percent year-on-year to 310m units,

but a slowdown in demand in China and Developed Asia dragged down growth, from

+19 percent year-on-year Q4 2014

    - 4G is rapidly gaining share - surpassing 50 percent of the global handset

market for the first time. GfK predicts a 4G ramp-up in China in the second

half of 2015 to drive incremental demand

    In the first quarter of 2015, global smartphone unit demand increased +7

percent, compared to the same period last year. Sales reached 310m units, with

growth down from +19 percent year-on-year in Q4 2014. This slowdown was caused

by a year-on-year decline in demand for smartphones in China and Developed

Asia, down -14 percent and -5 percent, respectively.

    Smartphone sales value in Western Europe declined on a year-on-year basis

for the first time in Q1 2015, dragged down by Spain and France. As smartphone

penetration nears saturation point, both countries are expected to see a

slowdown in smartphone unit growth this year compared to 2014.

    In Central Europe, the macroeconomic situation in Russia has significantly

impacted sales. As a result, GfK forecasts that 2015 smartphone demand in the

region will grow more slowly than Western Europe for the first time since 2010.

    Kevin Walsh, director of trends and forecasting at GfK comments, "The

weakness in China was caused by a significant slowdown in 3G demand, which was

not offset by 4G growth. We forecast China to return to growth in the second

half of the year, driven by a continued 4G ramp-up. In Developed Asia, the

year-on-year decline was caused by tough comparisons with Q1 2014, when demand

was pulled forward in Japan due to an upcoming VAT increase in April. We

forecast unit demand in Developed Asia to grow by +3 percent year-on-year in

2015, driven by Japan and South Korea, which are expected to return to growth

in 2Q15."

    The 4G ramp-up

    In Q1 2015, 4G unit share surpassed 50 percent of global smartphone demand

for the first time. China saw the greatest 4G share increase in the quarter -

up 16 percentage points to 73 percent, from 57 percent last quarter. Growth has

been buoyed by the continued price erosion of 4G smartphones. GfK forecasts

global 4G share to increase further in 2015, reaching 59 percent in Q4 2015.

    Smartphone growth in India and Indonesia is also expected to be helped by

an expanding 4G network. In Q1 2015, 4G share in both countries was well below

the global average, at 4 percent and 7 percent, respectively. GfK forecasts 4G

unit share within smartphones to reach 7 percent in India and 10 percent in

Indonesia in 2015.

    Supersize smartphone screens

    Q1 2015 saw a continued shift towards larger screen sizes (5"+), where

sales of 166m units equated to 47 percent of the global smartphone market, up

from 32 percent in Q1 2014. Share of large screen devices in N. America hit 70

percent in the quarter, up from 59 percent in the same period last year, driven

by strong demand for high-end models. By comparison, in China, where the trend

is particularly pronounced, the growth in share to 57 percent - from 32 percent

in Q1 2014 - was driven by cheaper large screen models flooding into the

market. GfK forecasts this screen size migration to continue in 2015, with

global demand for large screen devices increasing by +30 percent year-on-year

to account for 69 percent of total smartphone unit demand this year.

    Price Band dynamics in Q1 2015

    Low-end smartphones - those priced in the region of $0-250 - increased

share to 56 percent, up from 52 percent in Q4 2014, at the expense of the

high-end models ($500+), whilst mid-range ($250-500) share remained stable. GfK

forecasts low-end smartphones to gain further share in 2015, helped by

continued price erosion in emerging markets.

    The outlook for 2015

    Walsh continues: "GfK forecasts global smartphone unit demand to grow +10

percent year-on-year in 2015, a slowdown from the +23 percent growth

experienced last year. Emerging Asia is forecast to be the fastest growing

region, driven by India and Indonesia, where low smartphone penetration leaves

plenty of room for growth."

    Read the full release with tables:

http://www.gfk.com/news-and-events/press-room/press-releases/Pages/Global-smartphone-sales-new-Q1-record-as-4G-ramps-up.aspx

    Press contact

    Wes Rogers

    Telephone: +44-203-287-3262 / +1-912-506-0869

    Email: wes@greenfieldscommunications.com

SOURCE: GfK