In a fresh report from Counterpoint, it is found that Global telephone profits have fallen for the first time up to 3% in the Q3 2018. The global shipments of the phones have reduced to 386.8 million units. When growing by an average of 16% in the past 5 several years, the phone market is witnessing a slowdown with 1% general decline this year.
Numerous reasons could be cited as the root cause of the slowdown. Few of the ideas are the slowing global economy, rising trade tariffs, rising price tag of phones, etc. Despite XIomai and Huawei, all other massive brands this kind of as Samsung, Apple, LG and others have witnessed a decline in profits.
“Many markets have presently hit a saturation point for new smartphone demand and are dependent on replacement demand,” Counterpoint research director Tom Kang wrote in the report. “Buying a more expensive gadget results in extending the length of replacement cycles, especially after your earnings are limited.”
In total, Samsung shipped 72.3 million phones and ranked first, however it has declined 13% on the basis of year-on-year stats. Apple has maintained a steady increase of 0.1% in the total tally. Huawei, Xiaomi and HMD have witnessed considerable growth. Notably, Huawei shipments rose to 52 million units by 33% on the year-on-year basis. Xiaomi garnered 35.7 million profits with an increase if 25% on YoY basis.
HMD global aka Nokia has increased its shipments amount by 71%. On the most hand, Motorola and LG both have witnessed a double-digit dip this year. Apple remained steady and sold 170.8 million iPhones which are half a per cent more than the last year.
Some brands are doing well in the international market rather than the domestic. In the similar group, Xiaomi has registered a growth of 83% in the international market even though hit 16% in the domestic market.
We can say it’s a combined bag of ups and downs this time with general income fell by 3% this quarter.