Tag: smartphone shipments

Smartphone sales are slowing down as predicted this year

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.

Smartphone Sales Slowing Down this YearThe 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.

Smartphone sales at Huawei double in China in first half of 2015

The company has announced that despite the world’s slowdown in mobile phone sales, it is seeing tremendous growth.

Huawei Technologies Co. Ltd. has recently announced its sales figures for the first half of 2015, and what it has revealed is that within China, it has managed to double its revenues, despite the fact that the trend for these handheld devices has been slowing.

This has managed to break away from those slowing trends that have been faced by its larger rivals.

Xiaomi Inc. and Samsung Electronics Co. Ltd, are both struggling with a massive slowing trend in the growth of their smartphone sales and revenues. Now, despite the fact that Huawei, the fourth largest maker of mobile phones, had failed to meet their shipment targets for a span of two solid years, it has now broken away from that direction. It has placed a considerable focus on high-margin premium models of their devices which has allowed it to boost its handset shipments by over 33 percent when compared to the same time in 2014.

This new change in the direction of Huawei smartphone sales comes nearly three years after its strategy shift.

Smartphone Sales in ChinaThis skyrocketing sales rate has arrived nearly three years after the company made the choice to drop its branding as a budget option and to step up to face some of the massive players in the industry, such as Apple and Samsung, with high-end offerings. This has aligned very effectively in the Chinese marketplace, where consumers who had previously been extremely conscious of the price of the devices are now more willing to spend additional money if they feel that they will be receiving value and quality in return.

Unlike the smartphone sales situation at Huawei, the overall smartphone shipment trend in China actually experienced a shrinking for the first time in six years. The first quarter saw sales falling during that time and the former leader of that space, Xiaomi, recorded its own first drop in its semi-annual sales figures, saying that the domestic market is coming very close to saturation. That claim closely aligns with what many sources are saying about the smartphone marketplace in China.