Global smartphone revenue continued to grow last year despite falling sales. That’s according to the latest GfK data, which showed revenue growing 5% in 2018 to hit $522B.
This is despite smartphone unit sales declining by 3% the same year …
GfK released the data as new devices are unveiled at Mobile World Congress.
The explanation lays in the increased average selling price (ASP) of smartphones, as major brands like Apple, Samsung and Huawei continue to push the boundaries of what consumers are willing to pay.
However, the demand for smartphones in 2018 declined by three percent to 1.44 billion units sold worldwide versus 2017.
However, the holiday quarter – where Apple’s revenue came in well under its original expectations – was an exception.
GfK says the broader consumer trend has been to ‘own fewer but higher quality items,’ but a challenge for the tech sector is that there is also a preference for spending money on experiences over possessions.
The wearables market, dominated by the Apple Watch, continues to experience strong growth, says the company.
Again, then, it’s premium-priced products which is driving revenue growth.
Unsurprisingly, China was the main source of bad news.
The strongest growth was in what GfK terms ’emerging Asia’: Bangladesh, India, Indonesia, Cambodia, Malaysia, Myanmar, Philippines, Thailand and Vietnam.
We recently saw four different estimates of iPhone sales during the crucial holiday quarter.
Photo: Shutterstock
