STUNTED SMART­PHONE GROWTH

Gart­ner Ex­pects Smart­phone Sales to Grow Seven Per­cent in 2016

HWM (Malaysia) - - TELEPORT - HOT SHOTS -

Smart­phone sales are seem­ingly bleak this year, with re­search firm Gart­ner fore­cast­ing that 2016 will only see as much as a sev­en­per­cent growth in 2016. Specif­i­cally, the sales num­bers are es­ti­mated to reach ap­prox­i­mately 1.5 bil­lion smart­phones this year.

"The dou­ble-digit growth era for the global smart­phone mar­ket has come to an end," Ran­jit At­wal, Re­search Di­rec­tor at Gart­ner, com­mented about the fore­cast. "His­tor­i­cally, wors­en­ing eco­nomic con­di­tions had neg­li­gi­ble im­pact on smart­phone sales and spend, but this is no longer the case. China and North Amer­ica smart­phone sales are on pace to be flat in 2016, ex­hibit­ing a 0.7 per­cent and 0.4 per­cent growth re­spec­tively."

There are nu­mer­ous fac­tors as to why Gart­ner's pre­dic­tion is as such. The com­pany said that while smart­phone sales will continue 98 HWM | M AY 2 0 1 6 to grow in emerg­ing mar­kets, the growth won't be as quick as the pre­vi­ous years. They believe that this will be be­cause as many as 150 mil­lion smart­phone users will de­lay their pur­chase in fa­vor of al­low­ing more low-cost smart­phones to be­come avail­able.

In ad­di­tion to that, Gart­ner also pre­dicts that the life­time of smart­phones will in­crease among users.

"As car­ri­ers' deals be­come more com­plex, users are likely to hold onto phones, es­pe­cially as the tech­nol­ogy up­dates be­come in­cre­men­tal rather than ex­po­nen­tial," said An­nette Zim­mer­mann, Re­search Di­rec­tor at Gart­ner. "In ad­di­tion, the vol­umes of users up­grad­ing from ba­sic phones to pre­mium phones will slow, with more ba­sic phones be­ing re­placed with the same type of phone."

Ran­jit At­wal, Re­search Di­rec­tor, Gart­ner.

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