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Worldwide Smartphone Growth Expected to Slow to 10.4% in 2015, Down From 27.5% Growth in 2014, According to IDC

.2015 – According to a new mobile phone forecast from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, smartphone shipments are expected to grow 10.4% in 2015 to 1.44 billion units. This is lower than IDC–s previous smartphone forecast of 11.3% year-over-year growth in 2015. IDC expects to see a noticeable slowdown in smartphone shipments in 2015 as China joins North America and Western Europe in a more mature growth pattern. However, steadily falling average selling prices (ASPs) will fuel steady growth through the end of the forecast period, with global shipments reaching 1.9 billion units in 2019.
China remains the focal point of the global smartphone market in 2015, although the results haven–t been as positive as in previous years. As the largest market for smartphones ? China consumed 32.3% of all new smartphone shipments in 2014 ? its importance remains great even if its growth has begun to slow. Shipments are forecast to grow just 1.2% year over year in 2015, which is down from 19.7% in 2014. China will remain the largest market for smartphone volumes throughout the forecast period. However, its share of the overall market is expected to drop to 23.1% in 2019 as high-growth markets like India continue to expand.
“China clearly remains a very important market. However, the focus will be more on exports than consumption as domestic growth slows significantly,” said Ryan Reith, Program Director with IDC–s Worldwide Quarterly Mobile Phone Tracker. “India has captured a lot of the attention that China previously received and it–s now the market with the most potential upside. The interesting thing to watch will be the possibility of manufacturing moving from China and Vietnam over to India. We–ve begun to see this move as a means to cut costs and capitalize on financial benefits associated with localized India manufacturing. It is the local vendors like Micromax, Lava, and Intex that will feel the most pressure from international competition within its market.”
Despite Apple–s continued success with its variants of the iPhone, the story among operating systems is not expected to change throughout the forecast, with Android–s 81% share in 2015 carrying forward until 2019. Markets with the biggest growth opportunity are extremely price sensitive, which IDC believes will not change, and this is the main reason Apple will be challenged to take Android share throughout the forecast. Even if Apple were to introduce another low-cost iPhone (e.g., ?C? version), IDC believes the price will struggle to compete with Android OEMs that are focused on portfolios aimed at price points of $200 and less. This isn–t to suggest that Apple–s success with the iPhone won–t continue, and IDC believes its efforts to maintain significantly higher margins compared to its competitors are much more valuable than chasing share. 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  
On the device front, phablets (smartphones with 5.5″-7″ screens) will continue to drive shipment volumes in both emerging and developed markets. “Since Apple finally delivered a larger screen smartphone with the iPhone 6+, the demand for large screened devices among consumers has been at a record high,” said Anthony Scarsella, Research Manager with IDC?s Mobile Phones team. “Smartphones featuring display sizes from 5.5 inches to 6 inches are forecast to grow 84% in 2015 compared to last year, while  phablets overall will make up over 71% of shipments by 2019.” It is also worth noting that this screen size (5.5″-6″) also plays the role of having the highest average selling prices for devices throughout the forecast. IDC expects this screen size band to be the placeholder for a majority of vendors– flagship device launches throughout the forecast period.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC–s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad. The IDC Tracker Chart app is also available for Android Phones and Android Tablets.
For more information about IDC–s Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC–s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world–s leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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