Results 1 to 7 of 7

Thread: Smartphone Sales Are Slowing

  1. #1
    Join Date
    Jul 2002
    Location
    Canada
    Posts
    4,542
    Carrier(s)
    Telus $70/20GB (with family discount)
    Feedback Score
    0

    Post Smartphone Sales Are Slowing

    Name:  sincere-house.jpg
Views: 232
Size:  81.4 KB

    I saw signs of the smartphone market contracting while in Hong Kong this past January. While visiting the famous Sin Tat Plaza in Mong Kok—an entire mall devoted to mobile tech—it struck me that a significant number of shops were closed, with most of the activity limited to the lower floors of the building.

    Yesterday Android Authority added some hard numbers to my anecdotal observations, nicely summarizing recent smartphone sales data from both Strategy Analytics and IDC. The good news: 1.4 billion smartphones were shipped globally last year, a 10% increase over 2014 and the most units shipped in the market's history.

    The bad news: The rate of growth is down significantly—12.3% for all of 2015 vs. 31% for 2014, and just 6.4% in Q4 2015 compared to 31% in Q4 2014. That's the worst growth rate that the industry has ever seen.

    Samsung's profits are down 40%, and Apple is predicting its first drop in sales since 2003. So what's going on?

    IDC calls it a "more mature growth pattern"; I call it market saturation. Basically, everyone in North America, Western Europe and now China who wants a smartphone has now got one. And since smartphones are getting better and better I suspect that users are upgrading their hardware less often.

    This would also explain why OEMs are falling over each other to get a foothold in emerging markets—like India, for example.

    Now for the really good news: As the smartphone market gets increasingly saturated—sorry, "mature"—handset pricing will be a bigger differentiator than ever before.

    Source: Android Authority
    My mobile memoirs — free ebook available here.
    My HoFo feedback... is that still a thing?

  2. #2
    Join Date
    Jul 2002
    Location
    Gulf Coast
    Posts
    16,314
    Device(s)
    Moto G7 Power, Nexus 5X
    Carrier(s)
    T-Mobile, PagePlus
    Feedback Score
    0
    When everyone on the planet owns one, who are you going to sell to? One factor may be the discontinuance of subsidies in the US market. When people have to pay the real price, they are less likely to replace their phone every 24 months.
    Donald Newcomb

  3. #3
    Join Date
    Jul 2013
    Posts
    1,491
    Feedback Score
    0
    One factor may be the discontinuance of subsidies in the US market. When people have to pay the real price, they are less likely to replace their phone every 24 months.
    I think this is one reason most smartphones are so fragile--planned destruction! Seriously, I work in a small office and it is interesting how often someone's phone is broken. I recently went to a large shopping mall I haven't been to in awhile and I was struck by the growth in large phone repair centers right next to the shops selling phones. Some of the screen repair shops were equally as large and fancy as the AT&T and Verizon stores.

  4. #4
    Join Date
    Jul 2005
    Posts
    1,801
    Feedback Score
    0
    Unless you have money to burn there is no longer reason to upgrade every year.
    Unless you bench mark you will not be able to tell difference.

  5. #5
    Join Date
    Jan 2011
    Location
    Silicon Valley
    Posts
    2,063
    Device(s)
    Samsung Galaxy Note 9, iPhone 7 Plus
    Carrier(s)
    Verizon, T-Mobile, AT&T
    Feedback Score
    0
    Quote Originally Posted by DRNewcomb View Post
    When everyone on the planet owns one, who are you going to sell to? One factor may be the discontinuance of subsidies in the US market. When people have to pay the real price, they are less likely to replace their phone every 24 months.
    Yes, that's the biggest factor. Remember, when the iPhone was introduced, it was priced at $600 and there were no subsidies. Apple quickly dropped the price to $400 when it was not selling well at $600. The subsidy model came later when Jobs realized that consumers would happily pay the carrier $25 extra per month for 24 months, but would not pay $400-600 all at once.

    Today you can buy a flagship 5.5" screen Android phone for as little as $400, while the iPhone 6s+ starts at $749, and lacks some key features that are present on the Android flagships.

    The carriers and Apple are trying to replace subsidies with installment plans, but there's a fundamental philosophical difference between the two. For one thing, with the Apple upgrade plan, you have to turn in your existing phone. That's a brilliant move on the part of Apple since they don't want all those used iPhones out on the market depressing demand for new ones. They can use some of the returned phones for warranty replacements, or they can destroy them to keep them off the used market.

  6. #6
    Join Date
    Jan 2011
    Location
    Silicon Valley
    Posts
    2,063
    Device(s)
    Samsung Galaxy Note 9, iPhone 7 Plus
    Carrier(s)
    Verizon, T-Mobile, AT&T
    Feedback Score
    0
    Quote Originally Posted by Ten Four View Post
    I think this is one reason most smartphones are so fragile--planned destruction! Seriously, I work in a small office and it is interesting how often someone's phone is broken. I recently went to a large shopping mall I haven't been to in awhile and I was struck by the growth in large phone repair centers right next to the shops selling phones. Some of the screen repair shops were equally as large and fancy as the AT&T and Verizon stores.
    LG's flagship V10 is IP67 rated for water and dust, and is Mil-Std 810 rated for ruggedness. It should last a lot longer without expensive repairs than the more fragile phones. It's the only "phablet" with those ratings, though some smaller smart phones are similarly rated.

    I keep my smart phones in an Otterbox Defender. These cases are very good protection but they're big.

    A lot of kids stuff their smart phone in their back pockets and sit on it and break the screen. Two of my nieces had broken iPhones from doing that.

  7. #7
    Join Date
    Jun 2003
    Location
    FITH BEYOND Thunder Bay
    Posts
    18,278
    Device(s)
    IR GS BL00D Phone X N0 B.efore C.hrist E.ntity.. |nfinite HELLUS™ TnT $pawn + Ted§ Hell Hound T¡Ther
    Carrier(s)
    M¤ther Nature !... @SS2MOUTH Death 0f SELFie -> HardWare Opiates
    Feedback Score
    12 (100%)
    Hardly news, most commoditties are down
    Are pants commodities?

Similar Threads

  1. Smartphone days are gone...
    By Justin5117 in forum Windows Mobile Standard (Smartphone)
    Replies: 53
    Last Post: 08-25-2005, 11:35 AM
  2. I have EN, but my speeds are slow
    By wetdagger in forum Verizon Wireless
    Replies: 19
    Last Post: 04-07-2004, 09:18 AM
  3. Text messeges are slow and weird..
    By BlitzSix in forum Fido
    Replies: 13
    Last Post: 07-01-2003, 05:56 PM
  4. Smartphone Sales Small, But Valuable
    By Consultant in forum AT&T
    Replies: 0
    Last Post: 04-29-2003, 01:52 PM

Tags for this Thread

Bookmarks