Gartner: Smartphone sales growth to hit new low this year

Gartner: Smartphone sales growth to hit new low this year
The smartphone industry has certainly matured over the last few years and in 2016, for the first time ever, year-over growth in sales will not reach double-digits. The information comes from research firm Gartner, which forecast today that 2016 smartphone sales will rise only 7% to 1.5 billion units sold.

Gartner blames the lower growth on flat sales numbers in important regions like North America and China. Last year, Gartner reported that global smartphone sales rose 14.4% to 1.4 billion units. Including non-smartphones, there will be 1.9 billion mobile phones rung up in 2016, a 1.4% gain for the year.
 
The research firm says that in North America, consumers are less likely to upgrade to a new phone thanks to a combination of incremental updates and more complex deals from carriers. In emerging Asian/Pacific markets, 150 million people will delay updating from a feature phone to a smartphone, because of a dearth of functional low-end smartphones selling at a good price.


source: Gartner via Reuters

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3 Comments

1. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

This is where thing consolidate. Like the myriad of auto makers, in the hey days of the automobile, of the 1930, 1940 and 1950. The market will dwindle down to to four or three manufacture like GM, Ford and Chrysler in the auto market - so We may see the smaller OEM either gobbled up or leave the market all together with only Samsung, Apple and maybe a small third player. If you recall in the beginning days of cell service there was Nextel, At&t, Bell, etc. all of them consolidated to the 3 players we have today. I feel the same thing will happen with the Hardware manufactures. Incidentally the Manufacture that is in the strongest position right now is Samsung for the mere fact that it produces and Manufacture all of its components.

2. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I think many smartphone OEM's have already felt the pinch in sales, but I think the big guns like Apple and Samsung are going to feel a huge pinch. With phones not drastically changing, with carriers offering affordable ways to buy phones like monthly payments, such things will slow sales. That and phones are just so great now, there is just no need to upgrade every year. With Verizon's monthly plans, you can't make extra payments on the phone, your only option is to either keep making the monthly payment, or you have to pay the balance in full. So this basically forces you too stick out at least 12 months before moving to a new phone and many will just go the full 24. Even though the Galaxy S7 is a very nice phone, it isn't sporting nothing we haven't seen them do already, marking the first time Samsung used the same design language for 2 years in a row, but at least they did actually change the design vs Apple who shoved newer parts into an existing design for some free cash. None of the Android OEM are really pushing out any hum-dingers. HTC for me hasn't been great since the Droid Incredible, Sony Xperia is just lame since the first model. Moto jumping over to Google and then to Lenovo and yet producing nothing in the wake of the buyouts is sad end to a company who once lead the telecommunications front in the USA with one of the first mobile phones and beepers. With Blackberry and Nokia and even Microsoft not making any headway in the market, it was just a matter of time before sales start to take a huge hit. Until all these guys bring something to the table beyond speed/camera bumps, sales are going to take some huge hits. At least the Koreans dont have all their egg in one basket.

3. ibend

Posts: 6747; Member since: Sep 30, 2014

compared to 2015's, 2016's flagships is just split second faster at opening app, slightly more detail on camera department, split second faster autofocus.. :-/ and we see much change on 2015's compared to 2014's, like 14nm/16nm chipset, NFC, 2k screen, PDAF, and slow motion vids recording that became common for flagship, and new tech like LPDDR4 and UFS2 and I guess S6 still perfectly usable as daily driver for the next 4-5 years (even after they stop giving android update)

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