China reaching to saturation, brings smartphone sales to slowest growth rate since 2013
Despite weak performance of Chinese brands and strong performance of Apple in China, had led a marginal drop in share of Andriod in worldwide smartphone sales. Against to that, share of iOS has gone up. By the end of June quarter of 2015, of the total smartphones sold across world, the share of Android is 82.20% followed by iOS with 14.60%, Windows has 2.5%, BlackBerry has 0.3% and others have about 0.4%.
With consistent strong performance of Apple worldwide, for three consecutive quarters, the share of Android is falling marginally and Apple is gaining. However, the difference between the largest smartphone operating system and second largest – Android and iOS – is exponentially huge. Open outsource and price are the two largest factors to keep Android largest OS for smartphones.
Even today, of the 10 smartphone sales, eight has to be Android phones. The most popular and loved operating system, Android has reached to masses. Despite launch of new versions of rival operating systems i.e. iOS and Windows, Android has remained the king. Price of the Android phones will always make the operating system most sold.
As per the latest reports from Gartner, the worldwide smartphone sales to end users by Operating System in second quarter of 2015, 271 million Android phones were sold and about 48 million Apple phones were sold in the period. In the quarter, in across globe, Windows could manage to sell more than 8 million smart phones while the sales of BlackBerry phones were sold little more than one million in the same period.
Due to various factors including slowdown in China, the market share of Android marginally fell, reveals Gartner report. Android’s global share was affected by the weak performance of China in the second quarter of 2015 and the strong performance in China of Apple, which has taken share from Android for the last three quarters. “Android saw its lowest year-over-year growth of 11% with share reaching 82.2% in the second quarter of 2015,” said research director at Gartner, Anshul Gupta. Microsoft continued to struggle to generate wider demand for Windows Phone devices — even at the lower end. “In light of Microsoft’s recent cuts in its mobile hardware business, we’ll await signs of its long-term commitment in the smartphone market.”
According to Mr Gupta, the low barrier to entry into the Android segment will continue to encourage an array of new players, adding to further disruptions coming from Chinese manufacturing and innovative Internet players with new business models that are not reliant on hardware margins. He further revealed that Worldwide mobile phone sales to end users totaled 446 million units during the second quarter of 2015.
Shockingly, worldwide smartphone sales recorded the slowest growth rate since 2013 in the second quarter of 2015. Worldwide sales of smartphones to end users totaled 330 million units, an increase of 13.5% over the same period in 2014, says Gartner report.
“While demand for lower-cost 3G and 4G smartphones continued to drive growth in emerging markets, overall smartphone sales remained mixed region by region in the second quarter of 2015,” informed Mr Gupta in the statement issued by Gartner. Emerging Asia Pacific excluding China, Eastern Europe and Middle East and Africa were the fastest-growing regions, driven by good performance from Chinese and local vendors. By contrast, smartphone sales in China fell for the first time year over year, recording a 4% decline.
According to Gartner, China is the biggest country for smartphone sales. China represents 30% of total sales of smartphones in the second quarter of 2015. “Its poor performance negatively affected the performance of the mobile phone market in the second quarter,” said Mr. Gupta.
He further said that China has reached to saturation. “Its phone market is essentially driven by replacement, with fewer first-time buyers. Beyond the lower-end phone segment, the appeal of premium smartphones will be key for vendors to attract upgrades and to maintain or grow their market share in China,” said Mr Gupta.
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