Lower Priced 5G Models Seen Reversing Smartphone Sales Slide in 2020: Gartner

The global smartphone market will return to growth in 2020, after a 2019 sales decline of 2 percent, said Gartner Tuesday. Worldwide sales of smartphones to end users are on track to reach 1.57 billion units this year, up 3 percent from 2019, on continued rollout of 5G service and regional growth in the Middle East and North Africa (5.9 percent), Asia-Pacific (5.7 percent) and Greater China (5.1 percent), it said. Oversupply in the high-end smartphone segment and longer replacement cycles led to a challenging year in 2019, but broader 5G network coverage this year should lure users who delayed a smartphone purchase hoping for lower prices, said the research firm. 5G phone sales are forecast to total 221 million this year -- 12 percent of overall mobile phone sales -- and then more than double next year to 489 million units. With sub-$300 5G phones announced, sales growth of the category is expected to top that of 4G phones over 12 months, said analyst Annette Zimmermann. Strong demand, including expectations of Apple’s first 5G iPhone, will boost overall smartphone demand, particularly in Asia-Pacific and Greater China, where sales are predicted to reach 432.3 million and 376.8 million handsets. At next month’s Mobile World Congress in Barcelona, the spotlight will be on 5G devices at either end of the price scale, with pre-show announcements expected, said the analyst. “The key focus for vendors will be access to 5G and enhancement of the camera technology within devices.”