Source: GFK
Global smartphone sales remained strong in 2018 as the premium trend continues to fuel growth. In figures this equates to an increase of five percent ($522 billion). However, the demand for smartphones in 2018 declined by three percent to 1.44 billion units sold worldwide versus 2017. Smartphones represent the majority of the total spend on the global TCG market last year. This is expected to grow plus one percent in 2019, according to the latest report from GfK.
The figures for Q4 2018 reveal a similar trend. Around 375 million smartphones (down seven percent) were sold worldwide year-on-year with a sales value of $144 billion.
Around twelve percent (up from nine percent in 2017) of smartphones sold were priced at more than $800 in 2018. The mid-segment of $150-400 continues to be an important competitive battleground accounting for 46 percent of smartphones sold globally in 2018 (up two percent from 44 percent in 2017).
GfK’s Consumer Life Study shows that consumer trends are changing when it comes to possessions. Not only do they “prefer to own fewer but higher quality items” that they will pay premium prices for, but they “value experiences more than possessions”. Whether it is memory size, larger screen size or a multiple high megapixel camera this innovation does not ignite consumers’ imagination and stimulate demand.
Although a somewhat tough comparison with a strong Q4 2017, from October to December 2018, the dearth of appealing innovation continued prolonging replacement cycles and putting average selling price (ASP) under pressure. As a result, ASP declined two percent to an average of $384.
