1.2B Smartphones Bought In 2014, Led By Bigger Screens And Latin America

1.2B Smartphones Sold In 2014, Led By Larger Screens And Latin America

Apple is reaping the most important rewards proper now in terms of promoting its smartphones and different units, however the general image for the smartphone market within the yr forward could also be rather less rosy. 2015 will see a slowdown in progress as extra nations attain a saturation level, placing the main target extra on rising markets the place smartphone adoption continues to be in an early stage, and on newer fashions with bigger screens.

In accordance with the analysts at Germany-based mostly GfK, in 2014 there have been 1.2 billion smartphones bought, up 23% on the yr earlier than and crossing the billion-unit level for the primary time. However they predict gross sales will decelerate to 14% progress in 2015, understanding to complete gross sales of 1.368 billion units.

Will probably be an enormous gear shift after a yr by which globally, the inhabitants of function telephone customers, which have been nonetheless nearly all of gross sales at first of 2014, shifted to turning into smartphone customers, with Android taking lots of these newbies underneath its inexperienced wing.

GfK’s numbers are value noting as a result of the corporate tracks precise gross sales of units from greater than ninety markets. In distinction, corporations like Technique Analytics and IDC monitor shipments, and maybe consequently, their numbers seem to return out a bit greater than GfK’s.

Kevin Walsh, a developments analyst director with GfK, says that coupled with the concentrate on rising markets the place shoppers can be extra worth delicate, pricing will proceed to drop, too.

“We forecast rising areas to drive progress in 2015 as smartphones additional penetrate lower cost factors,” he says. “GfK forecasts that smartphone worth bands above $one hundred fifty will see a decline of their market share. On the subsequent degree down, $one hundred-one hundred fifty, gross sales will stay secure, however it’s the cheaper smartphones priced under this level that may achieve share.” GfK notes that each area apart from North America and developed Asia Pacific markets like Japan and Korea noticed a lower within the common promoting worth in This fall 2014.

Though costs could also be shrinking, the screens are doing something however that. Unit gross sales of smartphones with bigger screens of 5” or extra grew one hundred eighty% in 2014 and would be the largest phase in 2015. No shock that this development is consuming into the pill market, too.

Smartphones

Models Bought (in mil.)

Gross sales Worth (in billion USD)

FY 2013

FY 2014

% Change

FY 2013

FY 2014

% Change

Latin America

sixty eight.7

109.5

fifty nine%

20.6

31.four

fifty two%

Central & Japanese Europe

50.9

sixty nine.eight

37%

15.1

17.2

14%

North America

139.1

177.6

28%

fifty eight.2

seventy one.eight

23%

Rising APAC

ninety six.9

149.9

fifty five%

22.three

28.four

27%

Center East & Africa

ninety nine.eight

one hundred thirty five.2

35%

32.three

39.four

22%

Western Europe

one hundred fifteen.four

128.zero

eleven%

fifty two.2

fifty five.eight

7%

China Models

359.zero

392.eight

9%

ninety.1

ninety nine.zero

10%

Developed APAC

sixty eight.three

sixty five.1

-5%

39.6

38.1

-four%

Complete international models

998

1,228

23%

330.four

381.1

15%

Main Supply: GfK Smartphone gross sales based mostly on level-of-sale (POS) monitoring in ninety+ markets

As you possibly can see within the desk above, with regards to which area noticed probably the most progress in smartphone utilization final yr, Latin America noticed probably the most lively consumers, with gross sales as much as almost one hundred ten million, an increase of fifty nine%. Rising Asia Pacific nations got here an in depth second with fifty five% progress.

On the different finish of the spectrum is excessive quantity however slower progress. In China, there have been almost four hundred million smartphones bought — virtually one-third of the worldwide complete — however the nation is now within the saturated market class, seeing progress of solely 9% final yr, with progress slowing to a flat standstill in This fall. Regardless of that, GfK notes that “China will stay the most important market when it comes to each unit and worth gross sales for the foreseeable future.” Complete gross sales of smartphones in This fall in China have been as much as $28 billion, an increase of 21 %.

Smartphones

Models Bought (in mil.)

Gross sales Worth (in billion USD)

This fall 2013

This fall 2014

% Change

This fall 2013

This fall 2014

% Change

Latin America

25.1

36.zero

forty three%

7.2

9.9

37%

Central & Japanese Europe

sixteen.7

21.5

29%

four.5

5.1

12%

North America

forty three.6

fifty seven.zero

31%

18.four

25.1

36%

Rising APAC

30.four

forty one.eight

37%

6.four

7.6

18%

Center East & Africa

27.9

37.eight

35%

eight.7

10.eight

25%

Western Europe

35.1

forty.zero

14%

15.6

17.2

10%

China Models

ninety five.zero

ninety five.1

zero%

23.5

28.three

21%

Developed APAC

18.1

17.three

-four%

10.9

10.9

zero%

Complete international models

292.zero

346.5

19%

ninety five.three

114.eight

20%

Main Supply: GfK Smartphone gross sales based mostly on level-of-sale (POS) monitoring in ninety+ markets

 

Likewise, Japan and different “developed” Asia Pacific nations noticed smartphone gross sales truly decline by 5% in 2014 (and down four% in This fall alone), due partially to modifications in handset subsidies in Korea but in addition that continued situation of market saturation.

North America seems to be the area with a cheerful medium: it had the largest variety of smartphones bought after China for the yr, but in addition coupled that with above common progress of 28%.

GfK didn’t publish any numbers on which handset makers have been doing nicely, and which weren’t. However we requested they usually’ve offered no less than some platform knowledge — albeit incomplete: it neglected all of North America and doesn’t escape which Android makers are within the lead, and doesn’t distinguish between iOS and some other non-Android platform.

Nonetheless, for what it’s, it’s a revealing image of simply how robust Android is in sure markets in the mean time. As you possibly can see, globally whenever you exclude North America, firstly of 2014, nearly all of cellular gross sales have been nonetheless function telephones, accounting for sixty eight% of all gross sales. By This fall, Android held a fifty seven% of all gross sales, whereas featurephones have been simply at 29%. “Different smartphones,” that are primarily iPhone units, ended 2014 simply because it began: with 14% of gross sales.

Contemplating how a lot we speak about smartphones operating the present in the present day, it’s fascinating to see simply how highly effective featurephones have been initially of 2014 in quite a few different markets: they accounted for a majority of gross sales in each market in Q1, with India within the lead with ninety four% of all cellular gross sales going to function telephones. Whereas “different smartphones” remained secure or declined barely, Android has been the platform seeing probably the most progress.

OS Shares in gross sales models %International ex-NA

Android

Different smartphones

Featurephones

International4Q/eleven

18

14

sixty eight

4Q/12

38

12

50

4Q/thirteen

fifty two

12

36

4Q/14

fifty seven

14

29

Europe4Q/eleven

22

21

fifty seven

4Q/12

38

19

forty three

4Q/thirteen

fifty one

18

31

4Q/14

fifty eight

21

21

MidEast/Africa4Q/eleven

four

sixteen

eighty

4Q/12

sixteen

14

70

4Q/thirteen

28

eleven

sixty one

4Q/14

forty two

9

forty nine

SouthEast Asia4Q/eleven

23

sixteen

sixty one

4Q/12

32

17

fifty one

4Q/thirteen

forty three

20

37

4Q/14

fifty one

19

30

Larger China4Q/eleven

29

15

fifty six

4Q/12

sixty seven

eleven

22

4Q/thirteen

eighty

9

eleven

4Q/14

seventy five

15

10

India4Q/eleven

2

four

ninety four

4Q/12

7

5

88

4Q/thirteen

17

5

seventy eight

4Q/14

28

three

sixty nine

Latam4Q/eleven

thirteen

6

eighty one

4Q/12

27

eight

sixty five

4Q/thirteen

fifty nine

9

32

4Q/14

seventy eight

eight

14