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Global smartphone market to decline for 1st time in 2018: Counterpoint

IANS  |  New Delhi 

After years of growth, the global market has hit and would experience an annual decline of a little over one per cent for the first time in 2018, has said.

According to Counterpoint's latest forecast report, growth will drop to a negative 1.3 per cent in 2018. This is a first in the history of that the market has contracted Year-over-Year (YoY).

The smartphone market has been experiencing negative growth since the fourth quarter of 2017 and the negative trend is expected to continue in the September quarter and upcoming December quarter as well.

"Many markets have already hit a saturation point for new smartphone demand and are dependent on replacement demand. However, since last year consumers decided to trade up whenever they had the chance and are thus going for a better device, despite the price difference," said Tom Kang, Director,

"This is evident in the introduction of Apple's X last year. But buying a more expensive device results in extending the length of replacement cycles, especially when your earnings are limited," Kang added.

The weak demand was attributed to multiple factors -- starting from the global slowing down and exchange rates in emerging markets fluctuating rapidly as in the case of

"The US-tariff wars aren't helping the situation either. Some markets are cooling down after years of overshooting caused by extreme competition. But at the core of the weak demand could be the change in consumer behaviour," the report added.

Next year is unlikely to be much different as the trend continues with the new Xs Max introduced at a higher price point and with Samsung's foldable smartphone coming soon and on the horizon.

"Overall, smartphone revenue may grow 9 per cent compared to last year. This is even higher than the 7 per cent revenue growth of 2017," Kang added.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 08 2018. 16:20 IST
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