Tuesday, September 2, 2025
23.3 C
Lagos

Gartner: Worldwide Smartphone Sales to Slow in 2016

Gartner said global smartphone sales will continue to slow and will no longer grow in double digits. Worldwide smartphone sales are expected to grow 7 percent in 2016 to reach 1.5 billion units. This is down from 14.4 percent growth in 2015.
In 2020, smartphone sales are on pace to total 1.9 billion units.
“The smartphone market will no longer grow at the levels it has reached over the last seven years,” said Roberta Cozza, Research Director at Gartner.
“Smartphone sales recorded their highest growth in 2010, reaching 73 percent.”

Slowing Replacement of Phones
Today, the smartphone market has reached 90 percent penetration in the mature markets of North America, Western Europe, Japan and Mature Asia/Pacific, slowing future growth. Furthermore, users in these regions are not replacing or upgrading their smartphone as often as in previous years.
“In the mature markets, premium phone users are extending life cycles to 2.5 years, which is not going to change drastically over the next five years,” said Ms. Cozza.
Communications service providers (CSPs) have moved away from subsidies providing a “free” smartphone every two years, which has led to more varied upgrade cycles. On the other hand, CSPs have introduced financing programs and vendors such as Apple now offer upgrade programs that provides users with new hardware after only 12 months.
“These programs are not for everyone, as most users are happy to hold onto their phone for two years or longer than before. They do so especially as the technology updates have become incremental rather than exponential,” added Ms. Cozza.
In emerging markets, the average lifetime of premium phones is between 2.2 and 2.5 years, while basic phones have an average lifetime of three years and more. “2015 was the year when sales of smartphones overtook those of feature phones for the first time in Sub-Saharan Africa. This region represents an attractive market for vendors that can persuade users to migrate to their first smartphone,” said Ms. Cozza.

India Is the Main Focus for Growth Opportunity
Since mature markets are saturated, the focus for many vendors is on India and China. “India has the highest growth potential,” said Annette Zimmermann, Research Director at Gartner. “Sales of feature phones totaled 167 million units in 2015, 61 percent of total mobile phone sales in India.”
Smartphones are expensive for users in India, but with the average selling prices (ASPs) of low-end models falling, Gartner estimates that 139 million smartphones will be sold in India in 2016, growing 29.5 percent year over year. ASPs of mobile phones in India remain under $70, and smartphones under $120 will continue to contribute around 50 percent of overall smartphone sales in 2016.
After recording growth of 16 percent in 2014, sales of smartphones in China were flat in 2015. “In this saturated yet highly competitive smartphone market, there is little growth expected in China in the next five years,” said Ms. Zimmermann. Sales of smartphones in China represented 95 percent of total mobile phone sales in 2015. Similar to India, falling ASPs for smartphones will make them more affordable for users.”
“The worldwide smartphone market remains complex and competitive for all mobile phone vendors, and we are not expecting the vendor landscape to get smaller,” said Ms. Zimmermann. “In such a fluid vendor landscape, some will exit the market while newcomers, including mobile manufacturers or internet service providers from China and India, could make their debut.”
Gartner forecasts that by 2018, at least one nontraditional phone maker will be among the top five smartphone brands in China.
“Chinese internet companies are increasingly investing in mobile device hardware development, platforms and distribution as they aim to grow their user bases and increase user loyalty and engagement,” concluded Ms. Zimmermann.

spot_img
spot_img

Hot this week

Ecobank Nigeria @ 40: Group Unveils N60m in Cash Rewards Program for Customers

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

GOCOP 2025: Conference on Governance Challenges, Prospects Set for October 9

The Guild of Corporate Online Publishers (GOCOP) has announced...

NCC Advances Cybersecurity Framework to Safeguard Nigeria’s Telecom Infrastructure

L-R: President, International Youth Parliament, Hon. Promise Digos; Chief...

Northwest: The Lion’s Share of Tinubu’s Projects

By Tanimu Yakubu Director-General Budget Office of the Federation The Lagos Illusion The...

From Devaluation to Domination: How Tinubu’s Exchange Rate Reforms Turned the Naira into Nigeria’s Export Engine

By Tanimu Yakubu When President Bola Ahmed Tinubu’s administration...

Topics

Olashore’s Lead Advisory Emerges Nigeria’s 1st Strategic Partner to WCF Forum

WCF, the world's biggest communication Forum in Davos, Switzerland,...

NAICOM Chief, Sunday Thomas, Wins 2022 SERVICOM CEO Award

Mr. O. S. Thomas, the Commissioner for Insurance/CEO, National...

World Bank Dumps Doing Business Report over Data Irregularities

The World Bank Group issued the following statement on the...

NCRIB Visits NAICOM Chief, Segun Omosehin, in Abuja

L-R: The Executive Secretary/CEO, the Nigerian Council of Registered...

Cost of Global Cybercrime to Reach $2.1tr in 2019

By Doros Hadjizenonos Regional Director – SADC at Fortinet As the...

BlackBerry Announces 2OO Redundancies

BlackBerry has made around 200 staff redundant at its...

Anchor Insurance Secures NAICOM’s Approval for Local Passengers’ Flight Welfare Scheme

Ebose Augustine Managing Director/CEO Anchor Insurance Company Limited The National Insurance Commission...

NLNG’s Unwavering Commitment to Local Content Development in Nigeria

L-R: Mr. Andy Odeh, NLNG General Manager External Relations...
spot_img

Related Articles

Popular Categories

spot_imgspot_img