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Global Smartphone Market Falls With a Rate of 0.4% Due To Weak Demand

For the majority of smartphone users, desire has shifted away from owning the least expensive smartphone

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Smartphone
In addition, while waiting for 5G network coverage to increase to more countries, Smartphone users are delaying their purchase decisions until 2020. Pixabay

Global Smartphone Market continued to fall in the third quarter (Q3) of 2019, contracting by 0.4 per cent compared with Q3 of 2018, as demand remained weak because consumers became more concerned about getting value for money, a new report by Gartner Inc. said on Tuesday.

Despite the decline, Huawei was the only one of the top-five global smartphone vendors to achieve double-digit growth in the sales in Q3, 2019. The company sold 65.8 million smartphones, which is an increase of 26 per cent, year over year.

Its performance in China was the key driver of its global smartphone sales growth. It sold 40.5 million smartphones in China and increased its share of the country’s market by almost 15 percentage points.

However, Apple recorded another double-digit decline in sales, year over year.

“For the majority of smartphone users, desire has shifted away from owning the least expensive smartphone. Today’s smartphone user is opting for mid tier smartphones over premium-tier ones because they offer better value for money.

“In addition, while waiting for 5G network coverage to increase to more countries, smartphone users are delaying their purchase decisions until 2020,” Anshul Gupta, Senior Research Director at Gartner, said in a statement.

This shift has led brands such as Huawei, Samsung, Xiaomi, Oppo and Vivo to strengthen their entry-level and mid tier portfolios.

This strategy helped Huawei, Samsung and Oppo grow in Q3, 2019.

Samsung maintained the top 1 position globally in Q3, 2019, by increasing its smartphone sales by 7.8 per cent, year over year.

“Samsung’s aggressive revamp of its portfolio, with a focus on midtier and entry-tier segments, strengthened its competitive position,” noted Gupta.

While the ban on Huawei to access key US technologies is yet to be fully implemented as a three-month extension was just announced, the proposed ban brought negativity around Huawei’ brand in the international market.

Nevertheless, Huawei’s strong ecosystem in China continued to show growth.

Smartphone
Global Smartphone Market continued to fall in the third quarter (Q3) of 2019, contracting by 0.4 per cent compared with Q3 of 2018, as demand remained weak because consumers became more concerned about getting value for money. Pixabay

The current situation with the US has also fostered patriotism among its partners, which are now keener to promote its smartphones in China — a development that makes it difficult for local competitors to compete aggressively against Huawei.

Apple’s iPhone sales continued to decline i Q3, 2019 and it sold 40.8 million iPhones, a year-over-year decline of 10.7 per cent.

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“Although Apple continued its sales promotion and discounts in various markets, this was not enough to stimulate demand globally. In the Greater China market sales of iPhones continued to improve, however, it follows a double-digit decline recorded at the beginning of the year,” added Gupta.

At a time of limited technology-led innovation, product managers should focus on offering attractive features at low prices as quickly as possible. By offering better value for money, they can increase demand for smartphones, Gartner said. (IANS)

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Apple Plans to Unveil “Completely Wireless” iPhone

Furthermore, a note also mentions the five new phones that Apple will release in the year 2020

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Apple
Recently, the J.P. Morgan report claimed that in 2021, Apple could change how it releases iPhones. The iPhone maker could decide to release phones twice a year, instead of the single release in the fall. Pixabay

Noted analyst Ming-Chi Kuo has revealed that Apple is planning to launch a “completely wireless” iPhone in 2021, suggesting that the iPhone maker is not switching to USB-C, but rather dropping the port entirely.

“Apple will create more differentiation between the highest-end and high-end models. It will benefit the shipment of the highest-end model and iPhone ASP. Among new 2H21 iPhone models, we expect that the highest-end model would cancel the [Lightning] port and provide the completely wireless experience,” Kuo said in a research note, MacRumors reported recently.

Furthermore, the note also mentions the five new phones that Apple will release in the year 2020.

One 6.7-inch high-end iPhone, two 6.1-inch iPhones and one entry-level 5.4-inch iPhone, each of which would also have support for Sub-6GHz and/or mmWave 5G.

Apple
Noted analyst Ming-Chi Kuo has revealed that Apple is planning to launch a “completely wireless” iPhone in 2021, suggesting that the iPhone maker is not switching to USB-C, but rather dropping the port entirely. Pixabay

Kuo also expects a new iPhone SE to be coming sometime in the first half of 2020. It is expected to have a 4.7-inch display and mimic the size and design of the iPhone 8 with updated internals, and an updated single camera.

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Recently, the J.P. Morgan report claimed that in 2021, Apple could change how it releases iPhones. The iPhone maker could decide to release phones twice a year, instead of the single release in the fall. (IANS)