Global sales of smartphone drove demand with over 366.2 million units sold in the second quarter of 2017, a slight increase from previous with Android extending its lead with 87.7 percent market share, while iOS accounted for 12.1 percent according to Gartner a leading research company.

The demand for utility smartphones remains strong with strong growth seen in emerging markets for 4G smartphones, with more storage, better processors and more advanced cameras. This is translating into higher demand for midpriced RM700 – RM1000 smartphones noted research director Anshul Gupta.

While there was sales across all types of smartphone there is the concern about rising component costs, as well as limited supply, due to the reduced availability of critical components. Another problem foreseen is the expected shortage of flash memory and OLED displays which will affect premium smartphone supply in the second half, the effects first felt by Huawei P10 which suffered from flash memory shortage.

Samsung continues to lead the way, after three consecutive quarterly declines and hit by the Galaxy Note 7 issue, the Galaxy S8 and S8+ are bringing back high demand for Samsung smartphones. Apple on the other hand, despite clearing the distribution channel of iPhone inventory amounting to 3.3 million units during the second quarter, Apple’s sales were flat. But with the new iPhone pending announcement with  iOS 11, which will include augmented reality, machine learning, an improved Siri and a new display design, will likely fuel strong iPhone sales for this year.

Both manufacturers will look at China and emerging APAC markets as they continue to register growth in sales year on year, countries like India and Indonesia show appetite for new smartphones.