Smartphone market continues to grow, 6% yoy
North America returned to growth in the final quarter of the year, spurred on by flagship device launches and aggressive operator promotions.
Despite strong demand in Great Britain during Black Friday promotions, sales in Western Europe fell four percent year-on-year in 4Q16.
Based on GfK's Point of Sales data, smartphone demand totaled 1.41 billion units in 2016, in line with GfK's previously projected figures.
Looking ahead, GfK forecasts global smartphone growth in 2017 to moderate to five percent year-on-year, with total demand reaching 1.48 billion.
Smartphone demand totaled 38.6 million units in 4Q16, down four percent year-on-year. In Great Britain, demand was strong during November's Black Friday promotions.
However, this was not enough to offset 10 percent year-on-year declines in both Germany and France in the quarter. In 2016, the region saw a three percent fall in demand year-on-year, bringing sales for the year to 131.6 million units.
GfK forecasts flat year-on-year demand in Western Europe in 2017, as the overall region reaches saturation.
Here smartphone demand totaled 24.2 million units in 4Q16, up 16 percent year-on-year. Due to improving political stability, Ukraine saw an impressive growth of 34 percent year-on-year.
In Russia, currency stablization was the leading catalyst for improving smartphone demand, pushing sales up 10 percent year-on-year. GfK forecasts smartphone demand to reach 84.4 million in 2017, a rise of eight percent year-on-year.
Following a dip in 3Q16, the market saw a turnaround in demand in 4Q16. This was driven by operator promotions and flagship devices launches, both coinciding with the holiday season.
Smartphone demand hit 58 million units, an increase three percent year-on-year. GfK forecasts that tough competition between the carriers this year will drive marginal growth in smartphone demand of one percent year-on-year, totaling 193.4 million units in 2017.
Smartphone demand in the region reached 32.3 million units in 4Q16, building on the turnaround which started in 3Q16.
This is up eight percent year-on-year. Brazil's improving political and economic situation heralded a gradual recovery in demand during 2016, with November posting the first year-on-year increase in demand of the year.
Argentina demand remains strong, with 4Q16 up 38 percent year-on-year. In 2016, demand across the region is down one percent year-on-year. However, GfK has an optimistic outlook for 2017, as demand in Brazil continues to grow after two years of economic downturn.
Smartphone demand totaled 41.9 million units, up one percent year-on-year. This was weighed on by macroeconomic weakness in Saudi Arabia, Nigeria and Egypt.
However, GfK forecasts year-on-year smartphone demand growth in the region to accelerate in 2017, helped by expected economic improvements.
In China, smartphone demand totaled 118.9 million units in 4Q16, up 12 percent year-on-year. The 4G smartphone user base hit 57 percent by the end of the year, driven by operator subsidies.
Having penetrated the highly populated urban areas, 4G is now expanding to smaller cities and rural areas, as 2G and 3G users are encouraged to upgrade. GfK expects four percent year-on-year growth in 2017, bringing sales to 467.9 million units.
Overall smartphone demand totaled 20.5 million units in 4Q16, up four percent year-on-year. South Korea saw impressive growth of 17 percent year-on-year, helped by increasing demand for mid-range smartphones.
However, like Western Europe and North America, the region is saturated and GfK expects smartphone demand to fall two percent year-on-year in 2017 to sales of 72 million.
Smartphone demand in the region totaled 56.8 million units, up seven percent year-on-year, a slight slowdown from 3Q16. Demand in India grew five percent year-on-year, with strong Diwali sales in October partially offsetting the negative impact of demonetization.
GfK has a positive outlook for the region for 2017, with smartphone demand expected to grow nine percent year-on-year, reaching 229.4 million units.
Bangladesh's projected growth of 28 percent year-on-year, added to India's rise of nine percent year-on-year, provides a major contribution to this forecast figure. ■