Canalys forecasts 5% growth in smartphone shipments this year

Canalys forecasts 5% growth in smartphone shipments this year
If you thought that 2016 would be the beginning of a correction for the smartphone industry, better guess again. According to a projection from analytical firm Canalys, smartphone shipments will rise 5% this year to 1.4 billion units. One area of strong growth on the planet is the Asia Pacific market (excluding China). India, despite the limitations of low per capita income, will see handset shipments rise 21% this year according to Canalys. Another red hot market is the Philippines, where the number of smartphones delivered are forecast to rise 26% for the year.

Canalys notes that in markets like Western Europe and North America, where phone shipments declined in the first two quarters of 2016, a strong second half comeback is due thanks to the launch of the new Apple iPhone 7 and Apple iPhone 7 Plus. The researcher sees a strong enough iPhone led recovery that both regions will end 2016 with single-digit growth in smartphone shipments.

Even with a global increase in smartphone shipments this year, 2016 will not be a red letter year for Apple. Wall Street expects iPhone shipments will decline 9% during Apple's fiscal year, which ends in September. Analyst Ishan Dutt calls the Apple iPhone 6s and Apple iPhone 6s Plus "underwhelming" and blames a loss of momentum in China for Apple's current predicament. Another analyst, Jessie Ding, said "The iPhone 6s had a lackluster reception in comparison and the iPhone SE is unlikely to make a big difference to Appleā€™s fortunes in the region this year. Local players have improved product quality and offer much better value for money."

Apple is expected to return to growth in 2017 with a 5% increase in units shipped. Considering that next year will be the tenth anniversary of the iPhone, we could see some hot new features that Apple has been holding back on. As a result, deliveries of the iPhone might top Wall Street's estimates next year.


source: Barron's

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20 Comments

1. EC112987

Posts: 1216; Member since: Nov 10, 2014

iPhone 7 plus FTW

6. sgodsell

Posts: 7521; Member since: Mar 16, 2013

So far it's all Android baby ;-) The real FTW!

9. kiko007

Posts: 7520; Member since: Feb 17, 2016

Sure as hell ain't "all Android baby" on those profit reports ;-).

11. lyndon420

Posts: 6866; Member since: Jul 11, 2012

If there was only 2 or 3 OEM's making Android phones...it would be ;)

14. kiko007

Posts: 7520; Member since: Feb 17, 2016

That'd defeat the purpose of Open Source wouldn't it?

15. lyndon420

Posts: 6866; Member since: Jul 11, 2012

Not necessarily. Having 2 or 3 official alternative choices per continent/region is better than just one. If someone wants to come along and code up their own skin, apps and app store etc...who knows where things would go. I just think there's way too many OEM's making Android phones all at once.

12. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I always find it very strange for Apple customer to be bragging about Apple gigantic profit margin. Isn't it a oxymoron?? As a customer, I strive not to over pay for something be it a Note book, a car or a motorcycle. I just enjoy paying less so every time I hear an Apple fan boy brag about Apple profits, I cringed.

13. kiko007

Posts: 7520; Member since: Feb 17, 2016

Some people see things from both sides of the coin. As a consumer, I look for deals on things sure. However, that doesn't mean I don't understand good business acumen when I see it. ALL businesses wish they could fleece you for your wallet......but at least Apple has the balls to admit it! Google sells people like Internet hookers on Craigslist. MSFT doesn't know WTF they want to do with themselves. Amazon wants me to spend every dime I have shopping for God knows what. Etc. Apple simply sells high price hardware..... that's it! And it's not the product isn't great either. Never had a software issue with an iPhone, and the one hardware issue was solved within 5 minutes. You ain't gettin' that kind of service from LG......I can't promise you that :D. Plus you get a higher resale value ON TOP of that other jargon. Lastly, how come it's perfectly fine for bruh above me to be happy about MS, but I can't respect margins? That's a contradictory assessment FAM. You can't chastise me for my comments but agree with his.....because his reflect the same issues. There you have it :D.

16. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

I would have completely agreed with you if it weren't for the "Never had a software issue with an iPhone" part, sure it's more stable compared to Android, but iOS isn't as rock solid as it was on iOS 6 below days. Ask our friend Darkjedii if you disagree with me.

17. kiko007

Posts: 7520; Member since: Feb 17, 2016

Was speaking specifically for my iPhones.......IOS on my iPad is a whole other animal I'd have to tackle (terrible at tackling). I guess you could call the 8.0.1 update one too, but that was an entire outage type deal for a lot of us.

18. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Well, I am fine with however you want to spend your money. My question is do you see Android fan bragging about Google profit or Microsoft fan on Microsoft big revenue steams. The reason we don't do it is because it has nothing to do with us, the consumer. Like which Android OEM is making big profit or no profit. I don't care because it don't affect me. I am more concern about getting a good deal next to nothing. What also concern me is the artificial restrictions imposed by Apple making me pay more for expensive lighting port flash drive over dirt cheap microUSB flash drive. Remove my freedom to export data via share or file explorer. Another example i could relate is I like playing Nintendo exclusive console titles, but i would have to buy both their console and their expensive game titles just to have that privilege. Do you see me bragging about what an honor to pay the high price demanded by Nintendo. I just quietly pay and enjoy my game. So paying more for something is not a privilege rather a personal choice.

19. sgodsell

Posts: 7521; Member since: Mar 16, 2013

It's about smartphone shipments, is it not? However you are talking about profits. Sure everyone knows Apple makes 60-70% of their revenue profits from their overpriced iPhones, that come with older, and lower end tech. That just reaffirms that doesn't it? But hey kiko007 if you are proud of Apple fleecing more money out of its customers. Then Apple wins hands down. Even I will give Apple credit for that. However Android grew in the last two quarters. Yet Apple declined the last two quarters. Android has already accounted for over 600 million devices to date in the last two quarters. Meanwhile Apple has 91 million to date. So I will stand with my original statement of Android baby. The real FTW.

7. bobby84

Posts: 595; Member since: May 13, 2016

Note 7 FTW

2. shield

Posts: 863; Member since: Sep 12, 2015

gsmarena.com/details_emerge_about_the_lg_v20_for_t​mobile_alleged_preorder_date_of_september_23-news-​19969.php

3. IAMBLCKJ3ZUS

Posts: 432; Member since: Sep 29, 2015

Hp elite x3 & surface phone the saviours of the mobile race.

4. trojan_horse

Posts: 5868; Member since: May 06, 2016

I too think the Surface Phone is the next major innovation to await.

5. htcisthebest

Posts: 437; Member since: Nov 15, 2011

Only 9% expected decline for iphone shippment? I expect at least 13% decline! The biggest gainers this year will most likely be value phone manufacturers (e.g. Chinese manufacturers) and true innovators (e.g. Samsung).

8. ibend

Posts: 6747; Member since: Sep 30, 2014

title say "5% growth in smartphone shipments" but the article only talk about iphone, lol... u can't even find "android" word in that article

10. htcisthebest

Posts: 437; Member since: Nov 15, 2011

Typical iPhonearena style.

20. Charlie2k

Posts: 153; Member since: Jan 11, 2016

Guess who wrote the article :)

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