TheInternational Data Corporation (IDC) has revised its forecasts on the growth of the global Smartphone market this month, predicting that the astronomical growth of the Smartphone market will finally start to slow. Growth of the global Smartphone market is expected to fall to 19.3% this year, representing a significant fall from 39.2% year on year growth between 2012 and 2013.
The forecast is for a gradual reduction in growth over the next 3 years, falling to 8.3% in 2017 and a further couple of percentage points in 2018 as the markets in North America and Europe mature. However, there is still considerable scope for growth in emerging markets for both manufacturers and retailers, although it is probable that unit prices may have to be reduced considerably before this is possible.
It is clear that all players will need to work together and be prepared to cut profit margins to take full advantage of the potential for Smartphone sales in emerging markets. Current predictions indicate that the price of an average android phone will fall from the $335 to $260 by 2018.
The report predicts that android phones will remain at the top of the sales lists, with Apple destined to stay in second place. The Windows platform is expected to enjoy significant growth over the next four years, with the platform expected to be used on some 121.8 million units by 2018; more than twice the volume of units running currently running on the Windows platform.