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We're No Longer in Smartphone Plateau. We're in the Smartphone Decline. (nymag.com)

The days of double-digit smartphone growth are over -- and the next decade may start to see smartphone sales decline. A report adds: From roughly 2007 until 2013, the smartphone market grew at an astonishing pace, posting double-digit growth year after year, even during a global recession. They were the good years, the type that would inspire a Scorsese montage: millions and then billions of smartphones going out; billions and then trillions of dollars in rising company valuations; every year new models of phones hitting the market, held up triumphantly at events that were part sales pitch, part tent revival. (To nail the Scorsese effect, imagine "Jumpin' Jack Flash" playing while you think about it.)

But just like every Scorsese movie, the party ends. Smartphone growth began to slow starting in 2013 or 2014. In 2016, it was suddenly in the single digits, and in 2017 global smartphone shipments, for the first time, actually declined -- fewer smartphones were sold than in 2017 than in 2016. Every smartphone manufacturer is now facing a world where, at best, they can hope for single-digit growth in smartphone sales -- and many seem to be preparing for a world where they face declines.

12 of 205 comments (clear)

  1. Wafer by fluffernutter · · Score: 4, Funny

    Obviously smartphones aren't being made thin enough. They need to make them as fragile as a wafer, then they can sell more.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  2. Prices too damn high by Anonymous Coward · · Score: 4, Insightful

    Everyone I know "wants" a new phone, but they don't want to pay a grand.

    1. Re:Prices too damn high by torkus · · Score: 5, Interesting

      Price creep the last few years has been out of hand while the actual feature changes have slowed to a crawl or even gone backwards (looking for you headphones jack). Especially with "certain" greedy manufacturers who were recently charging $100 for 16 or 32GB of flash. Even now, $150 to go from 64 to 256 is a ripoff.

      People simply don't need the new phones because there's nothing to differentiate them. It's not even sexy or shiny when you can't tell the difference...especially when you're force to stuff them in a case that doubles the size.

      I'm still waiting for someone to take the chance on a thicker phone with a real battery. Apple did actually go a bit thicker on some of their latest phones but i don't think they actually added significant battery capacity.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    2. Re:Prices too damn high by ShanghaiBill · · Score: 5, Insightful

      Everyone I know "wants" a new phone, but they don't want to pay a grand.

      You have it backwards. People DON'T want new phones. Their existing phones are "good enough", so they are waiting longer and longer between upgrades.

      Since upgrade cycles are longer, the phone makers can only maintain revenues by pushing up the price of new phones, and adding silly features to justify the higher price. So far this strategy is working, with record revenues even in the face of falling unit sales.

      I have a 4 year old iPhone 6. It works fine. I have no plans to replace it.

  3. Everyone is making it more complicated than it is by KixWooder · · Score: 5, Insightful

    The market is saturated. Phones are good enough and not enough people care about a new camera to justify buying a new one. Smartphones, from any manufacturer, are not status symbols anymore.

    Why do we need article after article to tell us the obvious?

    --
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  4. Thousand Bucks? by CohibaVancouver · · Score: 4, Informative

    I also think we've reached a point where a thousand bucks is more than people want to spend on their "cell phone," regardless of how cool it is. My Samsung Galaxy S5 is long in the tooth, so I just replaced it - With an S7 that cost me $225 CAD.

    I don't think I'm alone.

  5. Still waiting for a another legitimate flagship by nightfire-unique · · Score: 4, Insightful

    I'm still waiting for a legitimate flagship phone to replace my Note 3.

    Every phone released after it has been worse, by some measure:

    - Missing key sensors (ie. thermometer, which is super useful while winter camping)
    - Missing the headphone/mic jack
    - Missing physical home and back/task switch buttons
    - Having locked bootloaders that are difficult to deal with
    - Having poor support for LineageOS/AOSP
    - Being constructed of metal/glass that breaks/bends easily compared to plastic, along with bizarre screen curvatures
    - Having wear components, such as batteries, glued in and non-replaceable, limiting the lifespan to ~18 months

    I have literally thousands of US dollars to spend on a new phone, and can't wait for the day something is released which rivals the Note 3.

    --
    A government is a body of people notably ungoverned - AC
    1. Re:Still waiting for a another legitimate flagship by Anonymous Coward · · Score: 5, Funny

      I'd put this under

      - super useful while winter camping

  6. "Smart"-phones is wrong. by Quakeulf · · Score: 5, Insightful

    They call them smartphones but they behave like dumbphones, making the user and everyone else involved dumber. They are designed to keep you dumb. The novelty of the name "smartphone" has worn off a long time ago.

  7. Depends on how you measure plateau by Oswald+McWeany · · Score: 4, Insightful

    If we're talking new sales of phones, yes we've reached a plateau. If we're talking about % of world population that use a cell phone... no, we haven't reached a plateau and won't for a long time.

    The main difference is, phone sellers raised their prices so much that people want to hold onto their phones longer. When a new phone costs $200 you don't mind replacing it in a few years. When a new phone costs $1000 you would be peeved if you were forced to replace it in two years.

    --
    "That's the way to do it" - Punch
  8. Time to cannibalize the PC market by HeckRuler · · Score: 4, Interesting

    If they make a decent interface from a phone to a real monitor, (and they get their butts out of their heads when it comes to bluetooth support for mouse and keyboard) then most people's use-case for owning anything other than a phone really diminishes.

    I don't know if it has to be wired. Mirroring the screen via chromecast didn't work so well for me, but maybe they could get it working. There's a few niche products out there that have a dock, but they didn't catch on.

    I could see a world where we all just walk around with our main computer on our body all the time. Instead of a work computer or a rig at home. A workstation would just be a chair, monitor, keyboard/mouse, wifi, and some place to plug in. And of course a bitchin' VR supporting super-computer next to a cybernetic psychic dolphin.

  9. Re:Everyone is making it more complicated than it by Known+Nutter · · Score: 5, Funny

    Anyone that shallow is probably hot...

    --
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