Published in Mobiles

Smartphone shipments to fall further

by on03 June 2016

So much for iPhone 7 and small screens saving Apple’s bacon

Any hopes that the Smartphone industry will pull out of its woes this year have been dashed by the latest IDC report.

IDC beancounters have been adding up the numbers and dividing by their shoe size and reached the conclusion that we’ll see a substantial slowdown in shipments this year, with 2016 (possibly) ending up at around only 3.1 percent.

IDC’s Worldwide Quarterly Mobile Phone Tracker thinks this year will probably see about 1.48 billion smartphone shipments, a number that is estimated to climb to 1.84 billion by 2020.

Some markets have seen changes in smartphone buying behaviour, particularly the United States, Canada, Western Europe, Japan, and China.
Regions where phones sales are largely spurred by carriers, there’s a big transition from two-year contracts to monthly device payments taking place. Similarly, regions described as being “retail heavy” are experiencing a big transition to online marketplaces as opposed to physical stores.
IDC said that companies and carriers will try to keep the smartphone life cycle at about two years despite the transition from two-year contracts.

“The focus has shifted toward trying to ensure that smartphone life cycles aren’t extended further. Things helping ensure relatively regular phone upgrades including early trade-in programs and lower-cost unlocked handsets.”


This means that 2016 will be kinder to Android phone makers than to Apple, which will see a two percent year-on-year drop in shipments. It also means that the iPhone 7 will be the lemon that everyone is expecting.

The Tame Apple Press insists that Apple will turn all that around by increases its presence in emerging markets like India while continuing its early trade-in program and cheaper offerings like the iPhone SE. However early signs are that the Indians are not going to allow Apple’s normal business plan in their country and could not afford it, even if it did.

Android smartphone shipments, meanwhile, are expected to grow 6.2-percent this year, reaching 1.24 billion shipments and rising steadily thereafter to about 1.57 billion by 2020.

Another of Apple’s moves issuing a phone with a smaller screen has proved to be out of touch with what was happening on the market. Phablet sales continued to grow and screens that were 5.5-inches and larger are anticipated to reach double-digital figures up through 2019.
IDC says consumers shouldn't expect to see 'phablet' prices drop either.

Last modified on 03 June 2016
Rate this item
(3 votes)

Read more about: