Apple iPhone

Today Gartner released analysis regarding the predominant factors that contributed to the 6.7 percent year-over-year increase in global smartphone sales. The research and advisory company found that regions within Asia-Pacific, India, Indonesia and Greater China largely drove the rise in sales resulting in the purchase of over 366 million units in the second quarter of this year.

“Although demand for utility smartphones remains strong, there is growing demand in emerging markets for 4G smartphones with more storage, better processors and more advanced cameras. This is translating into higher demand for midprice [$150 to $200] smartphones,” said Anshul Gupta, research director at Gartner.

The research found that Android broadened its lead by almost 88 percent market share. By comparison, iOS secured just over 12 percent market share. What’s more, Samsung posted 7.5 percent growth of smartphone sales despite negative press surrounding safety issues of the Samsung Galaxy 7 models overheating and exploding. “Despite growing competition from Chinese brands such as Huawei, Oppo and Vivo, we expect Samsung to register growth in 2017,” said Gupta.

Though Apple sales were flat during the period, the researchers suggested that older models of iPhones would be attractive to shoppers within emerging markets. “Apple’s sales in emerging markets are expected to grow as older-generation iPhones continue to attract buyers,” Gupta said. “The new iOS 11, which will include augmented reality, machine learning, an improved Siri and a new display design, will likely fuel strong iPhone sales in the fourth quarter of 2017 and help Apple increase its sales in 2017.”

Emerging markets in Asia-Pacific regions and Greater China cornered the majority of market shares and were driving factors in the overall growth in the categories. A company spokesman said, “Greater China and emerging Asia-Pacific markets drove sales of smartphones in the second quarter of 2017, with market shares of 27.7 percent and 21.4 percent.”

Additionally Indonesia, India and Southeast Asia added to year-over-year increases of smartphone sales within the Asia-Pacific location.

As the amount of smartphone owners and users increases in these growing markets, retailers and brands will be well-suited to increase cross-border shopping and shipping functionality early. Considerations in marketing to this largely untapped segment will also mine new consumers and ultimately, build additional revenue channels.

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