Annual Smartphone sales surpass sales of Feature Phones

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Bangalore: Worldwide sales of smartphones to end users totalled 968 million units in 2013, an increase of 42.3 percent from 2012, according to Gartner, Inc. Sales of smartphones accounted for 53.6 percent of overall mobile phone sales in 2013, and exceeded annual sales of feature phones for the first time.

Smartphone sales grew 36 percent in the fourth quarter of 2013 and accounted for 57.6 percent of overall mobile phone sales in the fourth quarter, up from 44 percent year over year. This increasing contribution of smartphones was led by growth in Latin America, the Middle East and Africa, Asia / Pacific and Eastern Europe, where smartphone sales grew by more than 50 percent in the fourth quarter of 2013. With a 166.8 percent increase in the fourth quarter of 2013, India exhibited the highest smartphone sales growth among the countries tracked by Gartner, and Latin America saw the strongest growth among all regions (96.1 percent) in the fourth quarter.

In the fourth quarter of 2013, mobile phone sales in mature regions fell due to weaker demand. “Mature markets face limited growth potential as the markets are saturated with smartphone sales, leaving little room for growth with declining feature phone market and a longer replacement cycle,” said Anshul Gupta, Principal Research Analyst at Gartner. “Lack of compelling hardware innovation has further exacerbated replacement cycles for high-end smartphones in 2013 because consumers don’t find enough reasons to upgrade.”

Gartner expects smartphones to continue to drive overall sales in 2014 and an increasing number of manufacturers will realign their portfolios to focus on the low-cost smartphone sector. Sales of high-end smartphones will slow as increasing sales of low- and mid-price smartphones in high-growth emerging markets will shift the product mix to lower-end devices. This will lead to a decline in average selling price and a slowdown in revenue growth.

In the smartphone OS market, Android’s share grew 12 percentage points to reach 78.4 percent in 2013. The Android platform will continue to benefit from this, with sales of Android phones in 2014 approaching the billion mark.

Worldwide mobile phone sales to end users totalled 1.8 billion units in 2013, an increase of 3.5 percent from 2012. Users bought 490.3 mobile phones in the fourth quarter of 2013, an increase of 3.9 percent compared with the same quarter in 2012.

Kerala IT News

Note: Image for representation only

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