HomeWinBuzzer NewsGartner: Smartphone Sales Continued Decline Through Q1 2019

Gartner: Smartphone Sales Continued Decline Through Q1 2019

Market researcher Gartner reports smartphone shipments fell 2.7% over the first three months of this year.

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Just over a year ago, I wrote an article about the first ever decline in smartphone sales. That piece was titled “Smartphone Boom Over” which was admittedly hyperbolic considering sales continue to be counted in hundreds of millions. However, the point was if the mobile bubble hasn't burst, it has now reached peak.

Research firm has reported the decline last year was not a one-off event. In its latest smartphone shipment report, the company says global handset sales dipped 2.7% during Q1 2019. The company says the reason for the decline is the rising price of premium flagship devices.

Companies such as and Samsung are now charging around $1,000 for their flagship devices. In other words, company's may be selling less but also making less. Still, in a business climate that counts raw sales, it is concerning to see device sales fall. Just ask Apple, which is moving through a crisis if you listen to some analysts.

Gartner says the United States and continue to be the largest smartphone markets. However, both those regions are heading in the wrong directions. In the U.S., sales fell a sizeable 15.8%, and in China the decline was pegged at 3.2%.

Changing Consumers

In the U.S., customers are waking up to several things. Firstly, they now understand they don't necessarily need to upgrade their smartphone yearly. Companies largely duped consumers with the latest and greatest yearly device revision cycle. Heck, OEMs got away with doing this while not even changing the look of their products year to year.

Secondly, consumers are also realizing there is now huge value below the flagship level. Devices that cost a fraction of $1,000 handsets are now legitimately good in their own right. Couple customers buying more affordable devices and buying them less often, continued sales declines could be on the horizon.

The question is how far will the market decline? Well, it is unlikely any kind of bubble bursting will happen. Consumers have become engrained with their devices and use them for multiple everyday tasks. Simply put, people now need their handsets, or at least think that they do.

SourceGartner
Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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