SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 223

HIGH PRIORITY MARKET

Global Smartphone Sales to Grow 7 pc in 2016

Smartphone Sales in China and North America Will Be Flat in 2016 PC Shipments to Bottom Out in 2016 , Return to Growth Expected in 2017
Global smartphone sales will for the first time exhibit single-
Worldwide combined shipments for devices ( PCs , tablets ,
digit growth in 2016 . Global smartphone sales are estimated to
ultramobiles and mobile phones ) are expected to reach 2.4
reach 1.5 billion units in 2016 , a 7 percent growth from 2015 .
billion units in 2016 , a 0.6 percent increase from 2015 ( see
The total mobile phone market is forecast to reach 1.9 billion
Table 1 ). End-user spending in constant U . S . dollars is
units in 2016 .
estimated to decline by 1.6 percent year over year .
Device Type Traditional PCs ( Desk-Based and Notebook ) Ultramobiles ( Premium ) PC Market Ultramobiles ( Basic and Utility ) Computing Devices Market Mobile Phones Total Devices Market
Table : Worldwide Devices Shipments by Device Type , 2015-2018 ( Millions of Units ) 2015 244 45 289 195 484 1,917 2,401
2016 228 57 284 188 473 1,943 2,416
2017 223 73 296 188 485 1,983 2,468
2018 216 90 306 194 500 2,022 2,521
Note : The Ultramobile ( Premium ) category includes devices such as Microsoft ' s Windows 10 Intel x86 products and Apple ' s MacBook Air . The Ultramobile ( Basic and Utility Tablets ) category includes devices such as , iPad , iPad mini , Samsung Galaxy Tab S 10.5 , Nexus 7 and Acer Iconia Tab 8 . Source : Gartner ( March 2016 )
The double-digit growth era for the global smartphone market
As carriers ' deals become more complex , users are likely to
has come to an end . Historically , worsening economic
hold onto phones , especially as the technology updates
conditions had negligible impact on smartphone sales and
become incremental rather than exponential . In addition , the
spend , but this is no longer the case . China and North America
volumes of users upgrading from basic phones to premium
smartphone sales are on pace to be flat in 2016 , exhibiting a
phones will slow , with more basic phones being replaced with
0.7 percent and 0.4 percent growth respectively .
the same type of phone .
Emerging Markets Continue to Grow , but at a Slower Rate
PC Shipments to Bottom Out in 2016
While smartphone sales will continue to grow in emerging
The global PC shipment market is expected to total 284 million
markets , the growth will slow down . Through 2019 , 150 million
units in 2016 , a decline of 1.5 percent year over year .
users will delay upgrades to smartphones in emerging
Traditional PCs are on pace to decline 6.7 percent in 2016 . In
Asia / Pacific , until the functionality and price combination of a
2016 , the PC market will reach its last year of decline before
low-cost smartphone becomes more desirable .
returning to growth in 2017 . The biggest challenge , and
Prices did not decline enough to drive upgrades from low-end
potential benefit for the PC market , is the integration of
feature phones to low-end smartphones . Vendors were not
Windows 10 with Intel ' s Skylake architecture . It has the
able to reduce the price of a ' good enough to use ' smartphone
potential for new form factors with more attractive features .
lower than $ 50 .
In addition , the frustration with the capabilities in tablets will
Countries such as India will help generate new mobile phone
drive some consumers and businesses to review new form
user growth . Sales of smartphones in India are on pace to
factors . However , to draw their interest the PC manufacturers
reach 29 percent in 2016 and will continue to exhibit double-
need to ensure that they meet demand with the right products
digit growth in the next two years .
at the right price .
Mature Markets to Increase Mobile Phone Lifetimes
Demand for ultramobiles ( basic and utility tablets ) will
In the mature markets of North America , Western Europe ,
continue to weaken , with a decline of 3.4 percent in 2016 .
Japan and mature Asia / Pacific , Gartner analysts expect to see
Users are not only extending lifetimes , but also some will fail to
an extension of phone lifetimes among users .
replace these devices at all through 2016 . Courtesy Gartner .
Spotlight on Indian Electronics 2016 | 223