According to Gartner, global smartphone sales are down by -2.7% Y-o-Y to 373 million units in Q1 2019, as slowdown in flagship handset innovation and rising prices continue to extend replacement cyles.
“Demand for premium smartphones remained lower than for basic smartphones, which affected brands such as Samsung and Apple that have significant stakes in high-end smartphones,” the analyst says. “In addition, demand for utility smartphones declined as the rate of upgrading from feature phones to smartphones has slowed, given that 4G feature phones give users great advantages at a lower cost.”
Samsung remains on top of the vendor rankings, even if sales are down by -8.8% Y-o-Y to 71.6m units. The S. Korean giant did see good response for the flagship Galaxy S10 portfolio, but it only started shipping the devices at the end of Q1 2019. The company also refreshed the mid- and entry-tier A and J series, and launched the M series, but aggressive Chinese competition limits the impact of such devices.