Smartphone Market Continues to Grow, Up 6.6 Percent Year-on-year in 2016

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NUREMBERG, Germany, Feb. 8, 2017 /PRNewswire=KYODO JBN/ --

- Continued 4G expansion in China, plus accelerating growth in Russia, drove

global demand over the year     

- Smartphone sales in 4Q16 totaled 391 million units globally, up six percent

year-on-year     

- All regions except Western Europe saw year-on-year growth in 4Q16

    Global smartphone demand totaled 391 million units in 4Q16, up six percent

year-on-year. 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.

    Smartphone sales 4Q 2016 vs. 4Q 2015

                                      Units sold                Sales value

                                     (in million)            (in billion USD)

                                                Y/Y %                     Y/Y %

                                 4Q15    4Q16   change      4Q15   4Q16  change

    Western Europe               40.4    38.6    -4%        16.3   16.2    -1%

    Central and Eastern Europe   20.9    24.2    16%         4.3    5.6    30%

    North America                56.2    58.0     3%        21.9   22.9     5%

    Latin America                29.9    32.3     8%         7.1    9.8    38%

    Middle East & Africa         41.5    41.9     1%        10.3   10.7     4%

    China                        106.6  118.9    12%        33.7   36.9     9%

    Developed Asia               19.8    20.5     4%        12.3   13.6    11%

    Emerging Asia                53.3    56.8     7%         8.5    9.8    15%

    Global                       368.6  391.2   6.1%       114.4  125.5   9.7%

    Source: GfK Point of Sales (POS) Measurement data in 75+ markets, December

2016

    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.

    Western Europe: A saturated market

    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.

    Central and Eastern Europe: A Russian recovery

    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.

    North America: Flagship device launches and operator promotions power 4Q

    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.

    Latin America: Argentina enjoys a stellar 2016, Brazil bounces back

    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.

    Middle East and Africa: Growth continues to abate

    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.

    China: The spread of 4G powers rising demand

    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.

    Developed Asia: South Korea drives growth in a saturated region

    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.

    Emerging Asia: India and Bangladesh drive growth in the region

    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.

    Smartphone sales 2016 vs. 2015

                                  Units sold (in mil.)        Sales value (in billion USD)

                                  2015   2016     Y/Y            2015 2016    Y/Y

                                 sales   sales   change          sales   sales  change

    Western Europe               135.4   131.6    -3%             52.9  53.6    1%

    Central and Eastern Europe    71.5    78.5    10%             14.5    17.1   18%

    North America                191.0   191.3     0%             72.1    71.8    0%

    Latin America                108.4   107.1    -1%             26.8    31.7   18%

    Middle East & Africa         157.5   165.5     5%             40.4    41.8    3%

    China                        385.3   450.1    17%            116.2   133.6   15%

    Developed Asia                73.4    73.8     1%             43.0    45.3    5%

    Emerging Asia                197.9   210.2     6%             32.2    34.1    6%

    Global                     1,320.5   1,408   6.6%            398.1   428.9  7.7%

    Source: GfK Point of Sales (POS) measurement data in 90+ markets for

calendar years 2015 and 2016.

    Arndt Polifke, Global Director of telecom research at GfK, comments, "There

is no other technology product that is as intensively used by consumers as the

smartphone. As a result, smartphone demand remains stable even in saturated

markets. Spurred on by the impressive range of exciting innovations, such as

virtual reality, artificial intelligence,  smart home functionality, mobile

payments and mobile health, smartphones are going to gain further relevance for

consumers in developed markets. On top of this, developing regions such as the

Middle East/Africa and Emerging Asia have yet to mature and as such still have

significant potential for growth. These two factors lead to a solid growth

outlook for smartphone demand in 2017."

    This release is based on final GfK Point of Sales data for October and

November, and December estimates based on preliminary data. For more

information, please visit http://www.gfk.com or follow GfK on Twitter:

https://twitter.com/GfK

Source: GfK