Emerging markets drive smartphone boom

India is number one gobbler of technology as demand evens out in mature markets

Smartphones overtook feature phones for the first time in 2013, accounting for 53.6 per cent of all global mobile phone sales, according to Gartner.

The growth was powered by emerging markets such as Latin America, the Middle East and Africa, Asia-Pac and Eastern Europe which all saw an increase in shipments during the fourth quarter of more than 50 per cent.

Topping the growth tables was India, which saw growth of 166.8 per cent in Q4, with Latin America seeing the highest regional growth at 96.1 per cent. China also saw smartphone sales grow 86.3 per cent in the quarter.

More established markets such as Western Europe face limited growth, the analyst claimed, due to weakening demand and saturation.

Anshul Gupta, principal research analyst at Gartner, said: “Mature markets face limited growth potential as the markets are saturated with smartphone sales, leaving little room for growth with declining feature phone markets and a longer replacement cycle.

“Lack of compelling hardware innovation has further exacerbated replacement cycles for high-end smartphones in 2013 because consumers don’t find enough reasons to upgrade.”

Leading the vendor pack for 2013 was Samsung, with 31 per cent market share in 2013, with rival Apple in second place with 15.6 per cent. Chinese giant Huawei snuck into third place with 4.8 per cent, closely followed by LG Electronics with 4.8 per cent. Growing contender Lenovo bagged fifth place with 4.5 per cent market share.

However, the order shifted slightly when looking at Q4, with the top three the same, but Lenovo overtaking LG in fourth place.

In terms of operating systems, Android topped the chart with a whopping 78.4 per cent market share, with iOS trailing behind with 15.6 per cent, Microsoft in third place with 3.2 per cent and BlackBerry clinging on with 1.9 per cent market share.

Looking ahead, Gartner said it expects smartphones to continue to drive overall sales in 2014, with more manufacturers "realigning their portfolios" to focus on the low-cost smartphone sector.

Sales of high-end smartphones will slow, the analyst predicted, leading to a decline in average selling prices and a slowdown in revenue growth.