STUNTED SMARTPHONE GROWTH
Gartner Expects Smartphone Sales to Grow Seven Percent in 2016
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.