Smartphone Sales Growth Will Drop To Single Digits In 2016, Says Gartner (techcrunch.com)
An anonymous reader writes from a report via TechCrunch: According to a report from Gartner, smartphone sales growth is expected to shrink from 14.4 percent growth in 2015 to just 7 percent in 2016, with only 1.5 billion smartphone units expected to ship globally this year. Gartner notes the market grew 73 precent in 2010, which was a high-point for the industry. One of the main reasons why the growth is shrinking is because consumers have less of a reason to upgrade their devices each year. Gartner notes that new devices offer only incremental upgrades over existing hardware and carriers have been moving away from subsidizing upgrades. The lifetime of a premium smartphone is between 2.2 and 2.5 years in emerging markets. The biggest smartphone growth is expected in India, where an estimated 139 million smartphones will be sold this year alone. The industry is growing 29.5 percent year-over-year in India. As for China, Gartner expects "little growth" in the region in the next five years calling it a "saturated yet highly competitive" market. Last week, it was reported that Microsoft is selling about 1,500 of its patents to Chinese device maker Xiaomi to build a 'long-term partnership.'
YAWN, call me when it goes negative.
Oh wait, I won't have a phone..
Of course sales growth / adoption rates have to level off: you can't sell a billion phones every year to a population of ~7 billion indefinitely. Much like desktops before them, smartphones have reached the point where the hardware is "good enough" that replacing it at less than a 3-5 year interval is unnecessary.
That's no more than nine phones world wide!
I wonder how many companies will realize the ramifications of this?
Technical Support will become more important, because people aren't trading in their phones every 18 months. (Replacing cracked screens, bonkered earphone jacks, bad buttons, etc. All the outward facing stuff.) (This could be a small business opportunity.)
Battery longevity (not charge, but how many charges it'll take) will become more important, as well as battery replacement. Let's face it, there aren't many people who will buy another $600 phone in order to get a new $40 battery.
Firmware updates may become more important. No, I'm not going to buy another phone just to go from OS 4.2.2 to OS 4.2.3.
Product differentiation might become features more like the LG G5, where the battery can be replaced in seconds without taking off the back. (I'm blase about "new" features, but that one I could actually use!)
Since people will be using their phones longer, perhaps more storage, or an easy way to migrate content to a PC, might be in order. ("Easy" *NOT* defined as some stupid dysfunctional proprietary app offered by the carrier that isn't worth crapping on.)
Maybe someone will be able to figure out how to shrink smartphone functionality down to watch size, and actually make is usable, without having to be bluetooth connected to a phone.
There's a *lot* of room for improvement in voice recognition.
There are probably other things. We could see this coming. Let's see now if the vendors could.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
not only is my short-term memory horrible...so is my short-term memory.
Growth is the important term here. Of course it is decreasing, now that basically everyone has a smartphone. You cannot go above 100% of the market. It used to grow a lot when people were transitioning from dumbphones to smartphones.
So, yes, people change their phone less often, but the 2010 figures were mostly the transition to smartphones.
In other news, the late Amazing Criswell filed suit against the Gartner Group, claiming "I've got the patent on making shit up for profit!"
only 1.5 billion smartphone units expected to ship globally this year
I guess a billion isn't what it used to be. Tough to grow by double digits when the market is that big.
We need to build higher quality smartphones in the US and keep jobs here. People will buy smartphones in the US if they know the phones are made here and support American workers. We must keep jobs from leaving the US. Build the wall to keep the jobs in the US. It's the only real solution from any of the candidates. TRUMP 2016!
Not hip anymore
If you own the *whole* market, 1B phones to 7B people would be a median replacement rate of about 7 years.
Which seems very possible, especially if you actually have a replacement schedule of 3-5 years to cover small kids and people who still don't get them.
But yeah, go from replacing your phone every other year to 3-5, as well as having market saturation among people who can afford them, and you're going to see slow sales growth.
I don't read AC A human right
So we have a news article whining about the mere single digit growth of the Smartphone in 2016, as if this gonna be the death knell of the smartphone industry
But wait ... how many percent growth we have in car sales this year?
Or for window curtains?
Or for watches?
Or for floor tiles?
Or for stainless steel spoon?
Instead of mourning the 'death of the smartphone' we should celebrate - because it is precisely in a saturated market that new ideas emerge
For cars, they went from Ford's model T and expanded it into Pickup Trucks, into SUV, and even Tesla, the electric car
If the market for Model T kept on expanding year on year, we will still have chokeful of Model T plying our road right now
Because of the saturated market for the smartphone new niches will be created and we as consumers will get to enjoy more choices
It's hard to justify spending 800 bucks on a new smart phone every year or two.
Mean what you say...say what you mean.
Umm, does anyone else realize that 7% of 1.5 billion is 105 million? If you figure $600 per phone that's $63 billion in new sales.
"X + Y = Nothing to do with Z" Sensationalist BOT submissions
Bye-bye ./
Comment removed based on user account deletion
I've wondered, but never to the point of taking the time, have Gartner prognostications ever been tracked?
just contact me
Last week, it was reported that Microsoft is selling about 1,500 of its patents to Chinese device maker Xiaomi to build a 'long-term partnership.'
So this has become a thing, apparently. It's not nearly the worst thing I've seen on a news site (even just today), but it is a transparent ploy and roundly unhelpful.
Well, unhelpful to the reader. I'm sure it's helpful to the site owners to zombie up a lightly attended article from X days back and plop some eyeballs on it.
But whipslash, can you maybe ask the guys that tune the bot to make it a little less non-sequitur-y?
Nothing posted to
I cant believe that in the 21st century economist and financial experts (companies included) believe that growth can last forever...
If i have a phone, it means that i wont need a phone in a foreseeably future. If a whole country has a phone, a whole country wont need phones. So, why some people/companies expect further growth in that case?? No comprendo.
Not Gartner, but this is one of my favourites: https://foundersgrid.com/bitco...
Read the predictions, then check the date at the bottom of the page.
...if they told me the sun was going to rise tomorrow.
From a security standpoint, smartphones are often abandoned well before their useful life. In that sense, it's a bit difficult to find the comparison with "good enough" desktop hardware. You won't lose support from your internet provider if you choose to reload your desktop. Even if you choose to run a different OS altogether, and use a different browser. The same cannot be said for smartphones.
And when consumers treat an unsupported smartphone as "good enough", the end result is finding their lives getting hacked, because that's exactly what they store in them.
Honestly, I'm not sure what's more annoying from a smartphone vendor. Stopping support well before the useful life, or non-removable battery design to all but guarantee your hardware will be killed prematurely. Both are rather disgusting practices based on pure capitalistic greed. And quite honestly these practices result in not only considerable security issues for the masses, but also contaminating our planet that much faster. You want to claim you're a "green" company? Then design AND support your hardware to last for at least five years, because the answer here is not merely a "please recycle!" sticker slapped on the box.
Slowing growth in the market is not a bad sign, it just means the market is reaching saturation. Which is neither good or bad. Overall sales and profits won't decline, they just won't grow faster than the population. Competition may intensify, causing individual market participants to grow or lose market share, but the overall picture won't change.
It's only 2016; Microsoft could still pull off a 10% Windows Phone market share by 2018. Have some faith.
*giggle* *snort*
Damn. I almost managed to keep a straight face...
Log in or piss off.
I'm not sure there ever was a reason to upgrade every year, but I've never had a cell phone last more than 2-3 years either the screen smashes or it starts glitching.
So the cycle has just slowed down.
Not as bad as laptops, those things go forever now, the next one I buy secondhand will cost me $200 and have the power of a supercomputer.