This is a stark contrast from the -2% decline Q1 2016 endured.
Commenting on the findings, Jeff Fieldhack, Research Director at Counterpoint Research said, “The industry recorded its slowest smartphone growth in 2016, however, we estimate the smartphone segment will bounce back registering 6-8% volume growth during 2017. The major factors driving growth this year will be the proliferation of LTE networks in emerging markets and the roll-out of Gigabit LTE networks in established markets. Operators will benefit from getting as many compatible devices onto these networks as possible. In addition, the launch of innovatively designed flagships from Samsung, LG, Apple and others sporting bezel-free displays, Gigabit LTE support, AI capabilities and other features will drive the upgrade cycles higher during the year.”
Commenting on the findings, Tarun Pathak, Associate Director at Counterpoint Research said, “While the global smartphone segment is about to witness growth, most of this growth is driven by only a few geographies such as India, Middle East & Africa, and small parts of Asia and Europe. These high growth markets were earlier driven by growth from local kings, which are now facing tough competition from Chinese brands that are venturing outside of their own domestic market in search for growth. So, we estimate these local kings, feeling the pressure, will adopt a similar strategy and subsequently expand outside their home markets. However, these Chinese brands come with a strong supply chain ecosystem backing and thus are at an advantage to put pressure on the local kings’ growth prospects.”
Commenting on vendor performance during the year Research Analyst, Shobhit Srivastava, noted, “Only three brands out of the top 10 clearly outgrew the overall market -- OPPO, vivo and Huawei. These brands have reached dominant positions in their home market putting immense pressure on Samsung and Apple. However, the second half of 2017 will be a strenuous time for these challengers as Samsung and Apple leverage their vertical expertise to churn out two of the most unique and highly desirable flagships.”
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