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Consumers unwilling to spend big on smartphones, IDC's Q1 2018 data shows

04 May 2018

The demand for smartphones has declined.

On April 25 Patent Apple posted a report titled "China's Smartphone Market Shrank 8% in Q1 2018 While Apple's iPhone Sales beat the Trend Spectacularly". The other Chinese vendors saw the highest decline since 2013 as the makers barely clocked 100 million units during the period.

Samsung's new flagships started shipping only during the end of the first quarter, and the sales figures are already quite impressive.

"In the US and the European top five markets, iPhone 8 sold in marginally higher numbers than the flagship iPhone X, indicating that as early iPhone X demand is fulfilled the price difference between the two devices is playing a notable role in consumers' choices".

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Samsung is still the number one smartphone manufacturer out there, and according to Canalys, Samsung's market share grew a bit, from 22.9-percent to 23.6-percent.

Samsung Electronics Vice Chairman Lee Jae-yong, center, looks around a Xiaomi store in Shenzhen, China, during his business trip.

Last week Samsung revealed strong sales of the Galaxy S9 led to "considerable growth in earnings", with profits reaching £11 billion during its first quarter. For the second quarter running, the iPhone X remains the world's most popular smartphone model overall, due to a blend of good design, sophisticated camera, extensive apps, and widespread retail presence for the device. Huawei, Xiaomi and BBK Electronics' OPPO and Vivo are fast-growing Chinese smartphone manufacturers.

This is Xiaomi has recorded the highest growth of 8.4% this year, nearly twice last year's level (4.3 per cent). A 21 percent fall in China was the main cause of the market contraction, which could not be offset by growth in markets such as India and Africa. Both saw a decline in the quarter as a result of the China market slowdown.

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Samsung Electronics Co. narrowed the profitability gap with archrival Apple the first three months of this year, industry data showed Thursday. Buying a $1000 smartphone is a huge investment and if you are spending that amount of money on a device then there are high chances that you are not going to be upgrading next year when a refresh of the same device comes out.

"Xiaomi's growth soared 125 percent annually in the quarter, outperforming all its major rivals". To counter Xiaomi's strong growth in the India market, OPPO has also shifted some focus to online channels where it had been exclusively focused on offline channels in the past. All other brands combined shipped 112.7 units, a decline of 18.5 per cent.

In place of emoji, Apple launched Animoji's that uses AR technology to create life emoji's of user's face with the use of every facial muscle. The company has become the fourth largest smartphone maker globally during first Quarter of 2018. Oppo and Vivo now hold the market share of 6.1% and 5.4%, respectively. Still, its market share still looks healthy at 7.1 percent as compared to the 7.5 percent it had this time previous year. While the Motorola brand did well, it was Lenovo smartphones that registered decline during the quarter.

Apple's launched it's most premium handset with a 5.8-inch Super AMOLED touchscreen display with 458 pixels per inch, 16 million colors.

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Consumers unwilling to spend big on smartphones, IDC's Q1 2018 data shows