Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Manufacturing/Packaging

Smartphone market to reach saturation soon

Posted: 15 Dec 2014 ?? ?Print Version ?Bookmark and Share

Keywords:mobile communication? smartphones? wearables?

While all segments of the smartphone market continue to soar despite strong competition, give or take a few more years and they will soon reach a plateau in sales, according to analysts.

Handset vendors will most definitely experience growth in low-, high-end and mid-range mobile phone segments in the coming years as stated by several market research firms. This positive scenario bodes well for industry players, particularly those vendors aiming at huge markets found in Asian powerhouses China and India.


Lu: Chinese and Indian brands will continue to dominate in the low-end segment.

Ajay Sunder, VP of ICTFrost & Sullivan (Asia Pacific), says that both the low-end and mid-range market can expect stiffer competition in the next two to three years, while high-end phones will remain a niche market where Samsung and Apple continues to dominate as well as dictate price points.

Gartner Principal Research Analyst CK Lu believes that Chinese and Indian brands will continue to dominate in the low-end segment. "Some vendors like Vivo, Huawei and Oppo will be able to move up tiers to sell more premium phones," he says.

What these facts covertly declare is that although mobile phone vendors in the lower end will have to slug it out over price and volume, they can expect revenues to go up in the next few years.

In India, for example, IDC Senior Market Analyst Kiranjeet Kaur expects

Ajay Sunder

Sunder: The high-end phones will remain a niche market.

Another IDC study sees the smartphone market, after having reached one billion units shipped last year, to increase 19.3 per cent this year and reach 1.2 billion units shipped. By 2018, total smartphone shipments will reach 1.7 billion units, resulting in a CAGR of 11.5 per cent.

"The worldwide smartphone market is heading for certain growth, although we are starting to see that growth beginning to slow down in the latter years of our forecast," says Ramon Llamas, research manager with IDC's Mobile Phones team.

Lu also imagines that smartphones will soon reach saturation, so the real question that phone vendors should be asking themselves is, how can they grow new revenue outside smartphones? "We believe there are still revenue opportunities such as wearable, consumer analytics [and] service/application," he says.

Sunder holds the same expectation. The analyst from Frost feels that many of these vendors will try to get into connected devices, particularly into wearable computing. He even mentions a specific scenario for an Indian brand: "For example, a Micromax phone with a MIcromax [smart] wristwatch, and [consumers can] get the whole thing with a discount."

1???2?Next Page?Last Page

Article Comments - Smartphone market to reach saturatio...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top