IDC cuts smartphone growth forecast on China slowdown

Nieuws Mobiel Wereld 25 AUG 2015
IDC cuts smartphone growth forecast on China slowdown
IDC has cut its forecast for global smartphones sales this year, due to the slowdown in China. It now expects annual growth of 10.4 percent to shipments of 1.44 billion smartphones, down from its previous forecast of 11.3 percent growth in 2015. However, the steady fall in prices will help keep volumes healthy for several years to come, with global shipments expected to reach 1.9 billion units in 2019. 

China is the world's largest smartphone market, good for almost a third of phones sold last year. However, growth in China is expected to slow to just 1.2 percent this year, from 19.7 percent in 2014, as the market matures in line with the pattern seen in many Western countries. China is expected to still remain the largest market for smartphone volumes throughout IDC's forecast period, but its share will fall to an estimated 23.1 percent in 2019 as other markets like India continue to expand. 

IDC's latest forecast also predicts that Google's Android will remain the dominant operating system, with an over 80 percent market share through 2019. As the markets with the biggest smartphone growth opportunity are extremely price sensitive, Apple will find it difficult to challenge Android's share, the market researcher said. Android shipments globally are expected to grow from 1.06 billion in 2014 to 1.54 billion in 2019, while iOS shipments will grow from 192.7 million in 2014 to 269.6 million in 2019. IDC's view that Microsoft/Windows Phone will remain a marginal challenger at best has not changed. 

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