Smartphone revenue will remain flat in 2016 as market growth shifts to budget handsets

Smartphone revenue will remain flat in 2016 as market growth shifts to budget handsetsAlthough 2016 has already seen some excellent smartphone announcements, the mobile industry won't be having it easy this year. Market growth froze in 2015, and analysts say the difficult situation isn't likely to budge in 2016. According to GfK's latest Quarterly Smartphone Tracker report, revenues from smartphone sales in the fourth quarter of 2015 dipped slightly to $115.2 billion, down 0.2 percent from a year ago.

Ironically, the same period saw a record number of handsets sold – 368 million units, up 6% year over year. However, commoditization made the average selling price tumble 6% in the fourth quarter. Even Apple projects a year of little to no growth in its iPhone business, and has had its stock fall by 26% since last summer.

With handset revenues falling, we saw mobile technology vendors extend their focus to accessories and smart gadgets, such as virtual reality headsets, connected appliances, and fashionable wearables. LG is betting big on the innovative "Friends" ecosystem of accessories for the LG G5, while HTC has racked up millions of dollars in pre-orders of its Vive virtual reality headset.

GfK’s director of trends and forecasting, Kevin Walsh, made it clear that the market picture largely varies by geography. While India saw smartphone sales rise 34% during the fourth quarter, growth was driven by phones costing less than $100. Comparatively, sales in China grew by 12 percent, while North American sales fell. Overall, what growth there is to be had is among increasingly cheaper phones, which is why we're seeing leading manufacturers dedicate increased attention to value-for-money oriented products.

The research firm forecasts the same trends will continue during 2016 – growth will be among cheaper handsets, while handset sales will grow from 1.308 million to 1.4 million. But revenue will remain flat, only increasing .5 percent to $401.3 billion.

Source: phoneArena

Tags: smartphones

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
1234567
891011121314
15161718192021
22232425262728
293031    




Poll

Do you use microSD card with your phone?
or leave your own version in comments (15)