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Smartphone Shipments Dip by 6.6% in Q1 2019, As Samsung and Huawei Maintain Lead

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Global smart phone shipment dipped by 6.6% year over year, during the first quarter of 2019 (1Q19), according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.

Smartphone vendors shipped a total of 310.8 million units in 1Q19, which marked the sixth consecutive quarter of decline.

In 2018, smartphone shipments dropped 4.1% over 2017, which was inclusive of a first quarter that was down 3.5% – just half of what the market experienced in 1Q19.

This quarter’s results are a clear sign that 2019 will be another down year for worldwide smartphone shipments.

The only highlight from a vendor perspective was Huawei, which made a strong statement by growing volume and share despite market headwinds.

Ryan Reith, program vice president with IDC’s Worldwide Mobile Device Trackers, said “It is becoming increasingly clear that Huawei is laser focused on growing its stature in the world of mobile devices, with smartphones being its lead horse.

“The overall smartphone market continues to be challenged in almost all areas, yet Huawei was able to grow shipments by 50%, not only signifying a clear number two in terms of market share but also closing the gap on the market leader Samsung.

“This new ranking of Samsung, Huawei, and Apple is very likely what we’ll see when 2019 is all said and done.”

From a geographic standpoint, while the China market will likely be challenged for the remainder of 2019, it was the U.S. market that felt the worst of the downturn in 1Q19.

Smartphone volumes declined 15% year over year during the quarter as replacement rates continue to slow in one of the world’s largest markets.

Apple iPhone challenges contributed to the exceptionally poor 1Q19 in the U.S., but they were not alone as Samsung, LG, and other top vendors also witnessed declining volumes during the quarter.

Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker, said “The less than stellar first quarter in the United States can be attributed to the continued slowdown we are witnessing at the high end of the market.

“Consumers continue to hold on to their phones longer than before as newer higher priced models offer little incentive to shell out top dollar to upgrade.

“Moreover, the pending arrival of 5G handsets could have consumers waiting until both the networks and devices are ready for prime time in 2020.”

Highlights of Smartphone Company shows that Samsung saw volumes drop 8.1% in 1Q19 with shipments of 71.9 million.

The results were enough to keep Samsung in the top spot of the market, but Huawei is continuing to close the gap between the two smartphone leaders.

Despite challenging earnings in terms of profits, Samsung did say that the recently launched Galaxy S10 series did sell well during the quarter.

With the 5G variant now launched in its home market of Korea and plans to bring this device and other 5G SKUs to other important markets in 2019, it will be equally crucial for Samsung not to lose focus on its mid-tier product strategy to fend off Huawei.

Huawei moved its way into a clear number two spot as the only smartphone vendor at the top of the market that saw volumes grow during 1Q19.

Impressively, the company had year-over-year growth of 50.3% in 1Q19 with volumes of 59.1 million units and a 19.0% market share.

Huawei is now within striking distance of Samsung at the top of the global market. In China, Huawei continued its positive momentum with a well-rounded portfolio targeting all segments from low to high.

Huawei’s high-end models continued to create a strong affiliation for the mid to low-end models, which are supporting the company’s overall shipment performance.

Apple had a challenging first quarter as shipments dropped to 36.4 million units representing a staggering 30.2% decline from last year.

The iPhone struggled to win over consumers in most major markets as competitors continue to eat away at Apple’s market share.

Price cuts in China throughout the quarter along with favorable trade-in deals in many markets were still not enough to encourage consumers to upgrade.

Combine this with the fact that most competitors will shortly launch 5G phones and new foldable devices, the iPhone could face a difficult remainder of the year.

Despite the lackluster quarter, Apple’s strong installed base along with its recent agreement with Qualcomm will be viewed as the light at the end of the tunnel heading into 2020 for the Cupertino-based giant.

Xiaomi also experienced a decline in 1Q19 with volumes of 25.0 million, which was down 10.2% year over year. Despite its continued movement into Europe and other regions, Asia/Pacific (excluding Japan) remains its most important region with China, India, and Indonesia accounting for the bulk of its volume in the region.

Of those three critical markets, India was the only country in Asia/Pacific where Xiaomi grew its shipments during the quarter.

Its brand continues to build out in many markets including India as it continues its push beyond urban markets and into rural areas of India.

vivo returned to the top 5 of the smartphone market with volumes of 23.2 million and a market share of 7.5%, tying* it with OPPO for the number 5 position.

Other than Huawei, vivo was the only other vendor at the top of the market that was able to grow shipments in 1Q19 with volumes up 24.0% over 1Q18.

India continues to be its most important market outside of China, and the company continues to invest substantial money on marketing with the Indian Premier League for Cricket being a prime example of these investments.

OPPO was tied* with vivo in terms of market share, although slightly behind in terms of overall shipment volumes.

OPPO shipped 23.1 million smartphones in 1Q19, enough to capture a 7.4% market share, although volumes were down 6.0% from 1Q18.

The recent announcement of the Reno series brought OPPO back to the forefront of the global smartphone innovation discussion.

However, lower end models like the A series continue to drive most of its smartphone volumes.

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Telcos 267 Different Tariff Plans Confusing for Subscribers– NCC

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MTN, Airtel, Glo and 9Mobile, four major Nigerian telecommunications companies, have a combined 267 tariff plans, according to Nigerian Communications Commission (NCC).

Telcos 267 Different Tariff Plans Confusing for Subscribers– NCC

The proliferation of tariff plans by mobile networks has been giving subscribers headaches, keeping them in dilemma on which to choose to get value for their money.

According to the NCC, the revelation of various tariff plans came through its research on the complaints of subscribers concerning data depletion.

Explaining the outcome of the research at a 2-Day Upskilling On Trends In Telecom Industry For Media Stakeholders held in Lagos,  Dr. Ikechukwu Adinde, director, Public Affairs, Nigerian Communication Commission, said majority of the telecoms subscribers did not know the actual tariffs charged by their network providers.

Analysing the various tariff plans by the telcos, Adinde said MTN as the largest operator, currently had 159 tariff plans, with 14 for voice and 145 for data. Airtel has 27 for voice and 41 for data services.

Globacom has six for voice and 32 for data, while 9mobile has seven different tariff plans for voice and 97 for data. According to him, the situation has made it difficult for many subscribers to actually select the beat tariff plan for them since there is proliferation of such plans on the networks of their providers, noting that most times, the difference between two tariffs is not discernable by the subscribers.

He said this had been affecting the quality of experience (QoE) advocating by the Agency, and so creating uncertainty for the consumers.

Meanwhile, he said the Commission was going to streamline the various tariff plans to just seven for better understanding of the consumers and to enhance the quality of experience.

“The whole idea is to ensure that consumers have a good experience, because too many tariff plans affect the quality of service – all benefits or allowances, voice, SMS and data must be seated in clear, useful and user friendly formats. “We don’t get this kind of transparency many of us are passionate about.


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First Set of Winners Emerge in Glo Festival of Joy Promo in Warri

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Digital solutions company, Globacom, on Thursday, in Warri, Delta State, held the first draw of its ongoing consumer promo, Festival of Joy. The draw was conducted at Gloworld, Delta Mall, and was attended by Glo subscribers, the media and representative of National Lottery Regulatory Commission, Mr. Anwyuli Efejukwu.

Globacom said the lucky winners including, “the winner of a brand new Toyota Prado and winners of tricycles, sewing machines, generators and grinding machines will receive their prizes on November 21, 2024 at the same Gloworld”.

To participate in the promo, Glo advised new and existing subscribers to dial *611# and recharge (voice and data) during the promo period. It added that new subscribers can join by purchasing a new SIM, registering it, and dialing *611#.

“New and existing customers are required to recharge up to N100,000 cumulatively during the promo period to qualify for the draw for the Prado Jeep, N50, 000 cumulative recharge for Kia Picanto, N10, 000 in a month for tricycle and N5, 000 total recharge in a month to win a generator.

For the sewing machine, a total recharge of N2, 500 in a month is required, while for the grinding machine, a recharge of N500 in a day will be eligible for the draw”. The company said.


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MTN Foundation Enhances Education with Renovation of 29 Laboratories in Nigeria

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MTN Foundation recently unveiled 29 fully renovated science and ICT laboratories in public secondary schools located in the Northeast and Southeast areas of Nigeria, including Kano, Gombe, Enugu, and Anambra.

This is part of MTNF’s Science and Technology Laboratory Project (STLP). The nationwide initiative has enhanced science education by equipping public school laboratories with state-of-the-art facilities and vital resources.

The STLP initiative reflects the Foundation’s commitment to youth empowerment and educational advancement in Nigeria, providing students with practical learning experiences in core science subjects such as Physics, Chemistry, Biology, and Agriculture.

The third phase of this project alone has seen the complete transformation of laboratories in six schools, with structural renovations, alternative power installations, digital learning tools, and specialised training for teachers and lab attendants.

The Foundation’s investment in education has paved the way for transformative programs like the MTN Scholarship Scheme, which supports Nigerian students in their academic pursuits, and digital skills training programs aimed at fostering technological competence and readiness.

Now, with its Science and Technology Laboratory Project, MTNF is extending these commitments to the very heart of the Nigerian classroom, transforming learning environments into spaces where students can explore, innovate, and excel.

MTNF Executive Director, Odunayo Sanya expressed the Foundation’s resolve, stating, “We are proud to support young Nigerians with the resources and environments they need to excel in science and technology.

“Our commitment is rooted in ensuring access to quality education for every Nigerian student.”

This dedication has fuelled MTNF’s efforts to establish impactful projects nationwide, positioning the Foundation as a pivotal player in advancing Nigeria’s socio-economic development and shaping a brighter future for its youth.

As the Foundation celebrates its 20th anniversary, its impact extends beyond laboratory renovations. Over the past two decades, the Foundation has invested N29.4 billion in diverse programs that improve the lives of millions across Nigeria, with a focus on youth empowerment, education, healthcare, and community development.

Guided by its new theme “Inspiring Impact Where it Matters,” the Foundation is committed to addressing critical national priorities, ensuring that underserved communities will continue to benefit from its initiatives.


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