2018 Was the 'Worst Year Ever' For Smartphone Shipments (cnbc.com)

2018 was the worst year ever for smartphone shipments, according to the latest figures from research firm IDC. It means Apple isn't the only company fighting to keep people interested in buying new phones every year. From a report: IDC said 1.4 billion smartphones were sold in 2018, marking a 4.1 percent decline for the year in an industry that's accustomed to rapid growth. In 2014, as well, 1.4 billion phones were shipped, which means the industry seems to have regressed about 5 years. Shipments shrank 4.9 percent for the fourth quarter of 2018, IDC said. Apple said earlier this week that iPhone revenues were 15 percent lower than last year. CEO Tim Cook said the strengthened dollar, an economic slowdown in China, lower subsidies on phones and its battery replacement program contributed to the drop in sales. Samsung phone shipments declined 5.5 percent and Apple's slipped 11.5 percent during the quarter, IDC said. But Huawei, which was able to capitalize on China, saw a 33.6 percent bump in shipments. Chinese vendors Oppo and Xiaomi also increased shipments, IDC said.

Comments

No killer features.

[johnsie]

Most people use their phones for messaging, calling people and scrolling through websites or looking up information. That can be done well on even the cheapest modern phones. I think a lot of people are addicted to their phones, but there's not this need to have the latest and greatest anymore as long as the apps run ok.

Re:No killer features.

[AmiMoJo]

Until recently there was a big difference between cheaper phone's cameras and the high end ones. Now that gap has narrowed considerably, especially due to some really good mid range Chinese devices pushing up expectations.

The industry is hoping that foldable displays are the next big thing, but so far no-one has demonstrated one that looked much good. They all tend to be a bit thick and a bit naff looking around the hinge.

The only other thing at the moment is getting rid of the notch. Many phones are going to pin holes now, which are better but still not perfect. Some are going to sliders which seem to work surprisingly well.

Google gave up on 3D scanning, seems like Apple may have a crack at it but it's not clear what the market is.

Re:Captain Obvious...

[prefec2]

When people only buy phones for replacement and do not increase the frequency of buying new phones nor do new customers appear on the scene, you have a stagnating market. Stagnating markets != growing market => economists get in panic, as growth is required for capitalism (in its present form). That is the concept the post you are answering to is refering to.

Re:Why is this badGood for the customer

[Anonymous Coward]

Capitalism does not require growth. Bullshit expectations of increased profit revenue requires growth.

Look, I get by on X Euro every year. If I don't increase my profits every year...my god, think of the consequences to the capitalism!

I don't know why everyone is brainwashed into thinking capitalism = unstopped growth and socialism = stalin.... a little of both with expectations of peace and happiness instead of growth and war would make a big difference towards unchecked carbon release.

Of course that's what various hippies since Jesus have been saying, so who gives a shit. The smart phone market is drying up! Fire the lowest paid employees and drive the stock back up!

1.4 *billion*??

[cascadingstylesheet]

1.4 billion?? Think about that as a percentage of the world's population. Holy carp.

And that's vs. the whole world population. What fraction of that group is actually the market for what is essentially as luxury consumer product?

This has to be one of the most amazingly successful luxury items of all time.

What should astonish is that it was ever more successful.

Re: Why is this badGood for the customer

[c6gunner]

However, capitalism requires growth

People keep saying this as if it were self evident, but it's just nonsense. Capitalism tends to create and encourage growth, but there's nothing about it which requires growth.

Re:Well their batteries keep dying.

[ctilsie242]

I have a two year old phone as well. Even more ironic, it has a nice feature that the newer iPhones don't... the fingerprint scanner.

Why spend all that cash for a relatively throwaway item? All buying a new phone does is make the phone makers richer. In previous years where there were actual improvements with devices, like higher IPS displays, fingerprint scanners, faster Wi-Fi and cellular speeds, it made sense to go with a newer phone. However, it will be years before "5G" gets rolled out, and there isn't much the latest iPhone 10xspro-platinum can do that an earlier iPhone can't, other than bouncy poop icons, and a little bit better camera footage.

Phone makers have failed to understand something: The economy is tightening. People are starting to make sure their job is secure, that they can cover next month's rent, and meet basic needs, should they get laid off. The last thing people are caring about is a new phone, especially when companies are starting to do mass layoffs.

Want to make a phone that sells? Make a decent midrange phone. Focus on VWs, not Maybachs. People will buy phones, but they are not going to throw $1500 at a new device in this economy. Perhaps make phones with user replacable batteries and other accessories, because people will buy new batteries, but not phones, especially if the economy gets worse.