It’s Official: The Smartphone Market Has Gone Flat
Markets reach a saturation. “Everyone who wants a smartphone has one” and the models become more and more durable. We need innovation!
The smartphone market has gone flat. Worldwide, smartphone makers shipped 334.9 million handsets in the first quarter of 2016, according to market research firm IDC. That marks a measly 0.2 percent increase over the same period last year, the smallest year-over-year growth ever recorded.
This means the era of insane smartphone growth is all but over. Apple, which always seemed unstoppable, saw iPhone sales drop 16 percent year over year last quarter. That’s the first time since the iPhone’s debut in 2007 that’s happened. Granted, the iPhone did account for $32 billion in revenue last quarter, but even Apple is feeling the new normal.
There are many reasons why the market has settled, but the biggest is this: everyone who wants a smartphone has one, and the phones they’re buying are so good that they don’t need to upgrade as often. Vendors now have a better sense of where they stand, and fighting for market share will become tougher. At the top of the pack, at least…
Read the entire article from Wired here: It’s Official: The Smartphone Market Has Gone Flat