Smartphone average selling price hits record growth: Page 2 of 2

October 25, 2017 //By Jean-Pierre Joosting
According to GfK, global smartphone demand reached 367 million units in 3Q17, up three percent year-on-year. This is the highest 3Q tracked by the firm, in terms of absolute demand, despite moderating growth.

Smartphone demand totaled 30.9 million units in 3Q17 in Western Europe, down seven percent year-on-year. The combination of the saturated market and delayed launch of the iPhone X has led to a year-on-year decline for the fourth consecutive quarter. Demand in Germany is set to decline by seven percent year-on-year and both Great Britain and France are expected to experience an eight percent fall. However, sales value in the region rose four percent year-on-year, driven by an 11 percent increase in ASP. As a result, GfK raised its 2017 smartphone revenue outlook for the region to six percent year-on-year. The shift towards very high end devices is a clear trend in this region, with one out of eight smartphones sold in this quarter priced above USD 900, compared to one out of 16 in 3Q16.

Smartphone demand continues to recover in Central and Eastern Europe, with a nine percent increase year-on-year in 3Q17, bringing demand to 22.3 million units. Sales value, however, increased at a faster rate of 26 percent year-on-year, driven by a shift in consumer demand towards higher-priced devices. The improvement in the region's demand in 3Q17 is mainly due to strong growth in Russia (up 10 percent year-on-year) and the Ukraine (up 19 percent year-on-year). The outlook is also positive, with 2017 smartphone demand forecast to grow nine percent year-on-year to 85.2 million.

In North America, smartphone demand totaled 49.3 million units in 3Q17, down one percent year-on-year. This represents a return to decline, following growth in 2Q. However, the outlook for 4Q17 is positive, as major product releases have been announced for this quarter. GfK forecasts 2017 smartphone demand to total 201 million units, a growth of one percent year-on-year.

In this region, smartphone demand reached 27.8 million units in 3Q17, a rise of 11 percent year-on-year. Demand in Brazil remains the driver of this sterling regional performance. Brazil experienced a 17 percent increase in demand in 3Q17 compared to the previous year. GfK has raised its 2017 forecast for Latin America to growth of nine percent year-on-year.

www.gfk.com