Global smartphone sales are expected to grow only 7% in 2016, according to a latest report from Gartner. Sales of smartphones in India are pegged to grow at 29% this year.The research firm stated that worldwide smartphone sales for the first time will exhibit single-digit growth in 2016. Global smartphone sales are estimated to reach 1.5 billion units in 2016, a 7 per cent growth from 2015. The total mobile phone market is forecast to reach 1.9 billion units in 2016. Worldwide combined shipments for devices (PCs, tablets, ultramobiles and mobile phones) are expected to reach 2.4 billion units in 2016, a 0.6 per cent increase from 2015. End-user spending in constant US dollars is estimated to decline by 1.6 per cent year on year.
Ranjit Atwal, research director at Gartner said,
The double-digit growth era for the global smartphone market has come to an end,” said . Historically, worsening economic conditions had negligible impact on smartphone sales and spend, but this is no longer the case. China and North America smartphone sales are on pace to be flat in 2016, exhibiting a 0.7 per cent and 0.4 per cent growth respectively.
Gartner said that emerging market are continuing the growth but at a slower rate. The research firm predicts that through 2019, 150 million users will delay upgrades to smartphones in emerging Asia/Pacific, until the functionality and price combination of a low-cost smartphone becomes more desirable. Countries such as India will help generate new mobile phone user growth. Sales of smartphones in India are on expected to reach 29% in 2016 and will continue to exhibit double-digit growth in the next two years.
Annette Zimmermann, research director at Gartner said,
Prices did not decline enough to drive upgrades from low-end feature phones to low-end smartphones. Vendors were not able to reduce the price of a ‘good enough to use’ smartphone lower than $50.