Monday, 03 September 2018 06:09

IDC sees global smartphone shipments growing from next year

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IDC sees global smartphone shipments growing from next year Pixabay

Global smartphone shipments will decline this year, but market intelligence firm IDC believes there will be low single-digit growth from 2019 through to 2022, according to the company's latest forecast released last week.

According to the IDC Worldwide Quarterly Mobile Phone Tracker, global shipments will fall by 0.7 % to 1.455 billion units, compared to 1.465 billion in 2017.

However, a small rise in shipments is seen in the second half of 2018, with volumes rising by 1.1% compared to the second half of 2017. That volume is expected to reach 1.646 billion units by 2022.

The company said large-screen smartphones — 5.5 inches and larger — would lead shipments with 841.6 million units (64.7%) shipped in 2018, making up nearly two-thirds of all shipments. The figures for 2017 were 623.2 million units of 42.5%.

By 2022, IDC expects shipments of these types of smartphones to increase to 1.391 billion units or 84.5% of shipments.

idc smartphones2

The company said as Chinese brands like OPPO, Huawei, vivo and Xiaomi expanded their international presence, the focus on large screens and aspect ratios would be across their entire range.

"With two out of three new iPhones expected to be larger than six inches, Apple will not be left behind in the 2018 race for increased screen real estate," said Melissa Chau, associate research director with IDC's Worldwide Quarterly Mobile Device Trackers.

"You could say the term 'phablet' is becoming less relevant now that most smartphones will ship with larger screens, and when folding screens start coming into play in the medium term, this screen trend will evolve in new directions."

IDC said the Chinese market was showing signs of recovery and while it was expected to be down 6.3% this year - a little worse than the 2017 fall - that would be due to a bad first half that saw smartphone shipments fall by 11%.

idc smartphones

The second half of 2018 is expected to limit that fall to 2% before growth was experienced in 2019.

“We still believe the smartphone market has some healthy growth in the years to come, although finding and competing in those markets and segments is increasingly more challenging," said Ryan Reith, program vice-president with IDC's Worldwide Mobile Device Trackers.

"With the US-China trade tariffs changing and unfolding daily it is hard to pinpoint what the exact impact on the market will be, but for the time being OEMs are pushing forward with important initiatives that include the previously mentioned traction around bigger and better displays.

"But the industry also has 5G knocking at its doors, and many OEMs, retailers, telcos, and supply chain partners will be working diligently to ensure consumers see the need to upgrade when products and services are readily available."

Graphics: courtesy IDC

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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