Smartphone Sales to Fall in the Single Digit Zone for the First Time this Year
For the first time the annual growth of smartphone sales is estimated to fall into the single digit zone, a 7 percent on 1.5 billion units this year down half from the previous 14.4 percent in 2105 and compared to 2010 were sales growth rate was 73 percent. The projected single digit sales growth is a one off aberration but a definite move for the worse as double digit rates is starting to disappear. Although sales is forecasted to reach 1.9 billion units in 202 not everything is good in the global smartphones market.
A research director for Gartner said that he double digit growth ear is starting to come to an end, and smartphones market will no longer grow at levels that was seen in the past seven years. reason such as the replacement rate is slowing as penetration rate in mature markets such as Western Europe, Japan, North America and some parts in the Asia Pacific already reached 90 percent and will continue to slow down. Mature markets will have uses of premium phones with extended life cycles of up to 2 and a half years, and will not change over the next five years.
In China, the smartphone sales grew 16 percent in 2014, but fell flat last year as the saturated market is highly competitive smartphone market little growth is seen in the next five years. plus in the January to March period around 349 million smartphones were sold in China an increase of 3.9 percent year on year. three top Chinese phone makers namely Oppo Electronics Corp., Xiaomi Corp., and Huawei Technologies have ranked among the global top five smartphones vendors garnering 17 percent of the market. Samsung Electronics extended their lead with a 23.2 percent share in the market, and Apple Inc took 14.8 percent of the market.
Chinese internet companies increased investment in mobile device hardware development, platforms and distributions as they target to expand the user bases and increase user loyalty.