Denny |
September 7, 2016
Emerging markets are continuing to exhibit positive growth, but as a whole it is declining in developed regions.
According to the Worldwide Quarterly Mobile Phone Tracker from the International Data Corporation (IDC), smartphone sales are declining as expected. Many forecasts pointed to an overall slowdown of mobile phone sales in 2016. This is linked to a reduction in sales in developed regions.
Despite the positive growth that continues in emerging markets, it isn’t enough to keep the entire marketplace’s pace.
The report showed that much of the smartphone sales currently occurring in developed regions is in replacements. The rate of new users has decreased substantially as penetration within these populations is now very high. The report predicted a 1.6 year over year growth of smartphone shipments in 2016. This, upon the shipment of 1.46 billion units by the end of the year. That may appear to be a healthy number, but it is a fraction of what it was last year. In 2015, the year over year growth rate for smartphone shipments was 10.4 percent.
As a whole, developed markets are expected to see a negative growth rate in smartphone sales.
The report took the United States, Canada, Western Europe and Japan into its definition of developed markets. Within that region, the IDC predicts a -0.2 percent compound annual growth rate (CAGR). Emerging markets were made up of Central and Eastern Europe, the Asia Pacific Region (except for Japan), Africa, the Middle East and Latin America. They are expected to see a 5.4 percent CAGR throughout the forecast period of 2015 to 2020.
Senior IDC research analyst at the Worldwide Quarterly Mobile Device Trackers, Jitesh Ubrani, said “Growth in the smartphone market is quickly becoming reliant on replacing existing handsets rather than seeking new users.” Ubrani also stated that from the point of view of the tech side, innovation is “in a lull.” Consumers have greatly reduced their inclination to purchase the latest device with all the newest bells and whistles. Instead, they are satisfied with mobile devices that are “good enough.”
Telcos have been working hard to breathe life back into their smartphone sales. Programs such as trade-ins and buy-backs are geared toward shortening lifecycles and increasing the inclination to purchase early replacements.
Mobile security is becoming more important
Security has become one of the most important aspects of the digital world. Much of the modern world has some tie to the Internet or otherwise relies heavily on technology that draws resources from the digital world. Because of this, security has become a top priority, especially as hackers and some malicious parties become more popular. IDC, a leading research firm, suggests that security is on the verge of becoming a very lucrative market, especially in the mobile space. Mobile security has become a major concern for many businesses and consumers over the past few years.
Hackers represent a new breed of thief
There are threats that exist in the digital world that are very unlike those that exist in the physical world. In the physical world, a criminal can steal physical properties, with varying degrees of success. In the digital world, however, there are no physical properties. Instead of stealing a purse or a mobile device, a hacker can steal something much more valuable: Information. Financial information, in particular, is highly prized among so called cybercriminals. As more consumers come to rely on their mobile devices to traffic such information, mobile security is becoming more important.
Security market expected to hit $870 million by 2017
According to IDC, the global market for security solutions will reach $870 million by 2017. Mobile security, in particular, is expected to be a powerful force in the security market. Hackers and other groups are beginning to focus more intently on the mobile space, largely due to the amount and kind of information that can be found on a mobile device. Until very recently, mobile security had not been an issue for consumers or businesses. This has left the mobile space with limited options regarding security and with lackluster awareness concerning the threats that exist in the digital world.
Awareness may be a significant problem for mobile security
Awareness is perhaps one of the greatest challenges currently facing the realm of mobile security. Many consumers know that threats exist in the cyber world, but not how they can protect themselves. Moreover, many consumers consider themselves invulnerable to these threats or think that their mobile device is too advanced to be susceptible to malicious attacks. Without appropriate awareness concerning mobile security, many consumers may be exposing themselves to significant risks.
