Sometimes we need to think for second or backup plan. The smartphone industries including Apple, Samsung may have seen its two-digit growth in 2015, and that could spell challenges for Apple and Android phones manufactures like Samsung.
According to IDC report on Thursday, In 2015, there was 10.4 percent rise for smartphone shipment from the previous year. But this year will see that growth rate drop to just 5.7 percent from 2015.
Bad news from developed markets like US, China and Western Europe, were already stuck in one-digit growth for smartphone shipments last year. One good news coming from high-growth markets like India, Indonesia, the Middle East and Africa, still managed to prove stronger.
According to Ryan Reith(program director with IDC’s Worldwide Quarterly Mobile Phone Tracker):
“The mature market slowdown has some grave consequences for Apple, as well as the high-end Android space, as these were the markets that absorbed the majority of the premium handsets that shipped over the past five years,”
Industries has been hit by a malady known as “phone fatigue.”
Buyers have been turned off due to lack of exciting and new features in phones, causing them to stick with their current phone. Mobile carriers are going away with subsidized plans at the same time, causing buyers to buy their phones at full price
Buyers in mature markets have been turned off by a lack of exciting features in new phones, causing more of them to stick with their current smartphones. At the same time, mobile carriers are doing away with subsidized plans, causing more customers to buy their phones at the full retail price, working as obstacle on sales of expensive models.
Apple’s new “Trade Up With Instalments” unveiled in February, program is expected to help convince more customers to upgrade to premium device. The program allows you trade in an old iPhone or iPad, apply the value of that device to a new phone and then pay off that new phone in instalments for next 24 months.
According to Reith: “By entering this space, Apple can more tightly control the trade-in offerings, as well as monitor the demand for where these perfectly functioning 1-year old iPhones end up,”
“The latter is just as important as the trade-in location as it will give Apple a strong pulse on areas of high demand but perhaps less disposable income.”
According to Anthony Scarsella(research manager with IDC’s Mobile Phones team): “Consumers also will continue to crave big-screened smartphones. Such phones, aka phablets, accounted for 20 percent of all smartphone shipments last year.”
Manufactures of Android device can find greater opportunities to sell lower-cost phones. Last year, only 14 percent of Android phones cost $400 or higher. Profit of sales are also less on cheaper phones.
Still, Android smartphone market is expected to grow up to 85 percent in 2020 from 81 percent last year. Overall smartphone shipments are expected to increase from 1.44 billion last year to 1.5 billion next year and 1.9 billion in 2020, IDC reported.
So far, we all have device in hand, it is just another movement. Let’s wait for next….