Smartphone sales outstrip feature phones for first time

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By John Glenday, Reporter

August 14, 2013 | 2 min read

Sales of smartphones leapfrogged those of cheaper so-called feature phones for the first time ever in the second quarter, according to an analysis conducted by Gartner.

In its smartphone market report the firm reported that global smartphone sales surged by 46.5 per cent from a year earlier to hit 225m units over the quarter.

This contrasts sharply with a 21 per cent decline in the sale of feature phones, which dipped to 210m units over the same period.

This growth has proven a boon for Google’s Android operating system which now enjoys a 79 per cent global market share, as it recruits the majority of new users to its fold.

For manufacturers this process has benefitted Samsung the most which offers a range of cut price smartphones, allowing it to boost its market share to 31.7 per cent from 29.7 per cent. Apple meanwhile saw its relative influence decline as its share sank from 18.8 per cent to 14.2 per cent – despite flogging 10.2 per cent more iPhones.

Gartner analyst Anshul Gupta said: “While Apple’s [declining] ASP demonstrates the need for a new flagship model, it is risky for Apple to introduce a new lower-priced model too. Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalisation will be much greater than what is seen today with the iPhone 4. Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it.”

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