Smartphone Production Drops By 23% in Q1 2017: Study

by CXOtoday News Desk    Apr 11, 2017

sales

Global smartphone production volume for the first quarter of 2017 totaled 307 million units, a drop of 23% from the previous quarter, according to market intelligence firm TrendForce.

Smartphone brands, especially those based in China, lowered their production volume forecasts through the first quarter as demand slowed down significantly due to the conventional seasonal effect, highlights the study.

Major brands such as Samsung, LG and Huawei have begun to ship their flagship devices for the year, but the market demand going into the second quarter is expected to remain relatively weak as consumers are holding off their purchases in anticipation of the 10th anniversary iPhone devices that will arrive in the third quarter. Smartphone sales will be fairly lack-luster until the second half of this year. TrendForce estimates that the global smartphone production volume for this second quarter will register a modest single-digit growth versus the preceding three-month period.

Strong sales of the Galaxy J series made Samsung the only brand posting production volume growth for the first quarter, noted the study. Samsung’s sales results for its high-end smartphones fell short of expectations in the first quarter as consumers’ confidence in the brand had yet to fully recover from the recall of Galaxy Note 7. Nevertheless, Samsung continued to do very well in the mid-range and low-end segments of the market. The economically priced, high-performing Galaxy J series sustained Samsung’s shipments and contributed significantly to the expansion of the brand’s overall smartphone production volume. Samsung was the only brand that saw positive growth in production volume during the off season of the first quarter.

TrendForce estimates that the total production volume of all iPhone devices for the second quarter will reach around 43 million units, a decline of 17% from the preceding quarter. Apple will likely to lower the production of existing iPhone models as the company prepares for the launch of the next-generation devices in the third quarter.