IDC predicts a global slowdown in the growth of smartphone shipments

With 2015 nearing the end, predictions for the 2016 year have begun. Unlike years past, IDC is predicting a global slowdown in the growth of smartphone shipments.

According to the report, IDC predicts a 9.8% slowdown in growth. Let’s just be clear that smartphone sales are still predicted to reach an all-time height, however, the growth may not surpass that of recent years. It’s believed that the slowdown is due to two reasons. The major reason being China, the largest market for smartphones on the planet. Researches are convinced that nearly all who want a smartphone in China have purchased one. That leaves only the people waiting to upgrade to their next device remaining.

The other reason being that most high-end smartphones purchased these days are capable of lasting 2 years if not more without the need to be replaced. This trend is attracting manufacturer’s to focus on the lower-end markets such as ones in Africa and some in the Middle East. However, because high-end smartphones makeup the majority of worldwide shipments, the overall growth may come to a slowing. Analysts predict 2016 will be the year we begin to see this take place. IDC is predicting that the increased holiday weekend sales and low-end markets will try to replace the loss of high-end smartphone purchases going forward. This is a noteworthy concept and it’ll be interesting to see how the market plays out. Feel free to leave your forecast for the 2016 year in the comments down below.

Source: WSJ

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