India to buck the global smartphone sales trend: Gartner

Smartphone shipments are expected to increase globally by seven per cent in 2016, and Gartner indicates that an extension of phone lifetimes could be one reason for the slow from previously double-digit growth. Worldwide it's expected that smartphone growth will hit 7 percent, or sales of 1.5 billion units. Sales of smartphones in India are on pace to reach 29 per cent in 2016 and will continue to exhibit double-digit growth in the next two years. In addition, sales in China and North America are set to be flat in 2016, posting a growth of just 0.7 percent and 0.4 percent respectively.

Gartner has also predicted 150 million consumers will delay upgrading to smartphones in the emerging Asia Pacific markets through to 2019, until the functionality and price points becomes more desirable. "Vendors were not able to reduce the price of a "good enough to use" smartphone lower than Dollars 50", Gartner Research Director Annette Zimmermann said.

These are the kinds of markets Apple will be hoping to target with its 'affordable' iPhone SE, as it offers a slightly less premium device to users in developing markets.

"As carriers' deals become more complex, users are likely to hold onto phones, especially as the technology updates become incremental rather than exponential", explains Zimmermann.

Given this scenario, "Countries such as India will help generate new mobile phone user growth".

However, the pace of increase in such new markets is expected to slow in the coming years. The phone market as a whole could reach 1.9 billion units at the end of the year.

"2016 had a weak start to the year but it may finish off with a more positive slide at the end of the year", said Atwal. Traditional PCs are on pace to decline 6.7% in 2016.

IDC's report said overall worldwide PC shipments from 2016 to 2020, including both portable PCs and desktop PCs, will decline 0.5 percent in mature markets.

However, the report predicts that it is the past year of decline for PCs and the market will return to growth in 2017 owing to the emergence of new form factors with attractive features powered by integration of Windows 10 with Intel's Skylake architecture. This is a direct effect of, among other factors, the higher quality of smartphones that have been released more recently, which allows users to enjoy them for a longer period of time before they feel the need for an upgrade.

Demand for ultramobiles (basic and utility tablets) will continue to weaken, with a decline of 3.4 per cent in 2016, Gartner said.

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Source: India to buck the global smartphone sales trend: Gartner