http://www.eetimes.com/document.asp?doc_id=1329335&;
Smartphone Sales Growth Projected to Slip to 7%
Dylan McGrath
4/1/2016 06:12 AM EDT
SAN FRANCISCO-Smartphone sales will grow at the lowest rate on record and PC
sales will decline again in 2016, according to market research firm Gartner Inc.
Gartner (Stamford, Conn.) said it expects smartphone sales to grow 7% this year
to reach 1.5 billion units. It would mark the first time that smartphone sales
grew at less than 10% in a year, according to the firm.
"The double-digit growth era for the global smartphone market has come to an
end," said Ranjit Atwal, research director at Gartner, in a statement.
Atwal added that worsening economic conditions have historically had a
negligible impact on smartphone sales. But that is no longer the case, he said.
Smartphone sales in both North America and China are forecast to be roughly
flat this year.
The total mobile phone market is forecast to reach 1.9 billion units in 2016,
Gartner said.
Combined, global sales of PCs, tablets, "ultramobiles" and mobile phones are
projected to reach 2.4 billion in 2016, an increase of less than 1% from 2015,
Gartner said.
Meanwhile, Gartner predicts that PC sales will decline once again in 2016. The
firm projects that global PC shipments will decline 1.5% to 284 million units
this year, with shipments of traditional PCs on pace to decline nearly 7%.
The good news is that Gartner also predicts that the PC market will "bottom
out" this year, returning to growth next year.
"In 2016, the PC market will reach its last year of decline before returning to
growth in 2017," Atwal said. "The biggest challenge, and potential benefit for
the PC market, is the integration of Windows 10 with Intel's Skylake
architecture. It has the potential for new form factors with more attractive
features."
Gartner also predicts that frustration with the limitations of tablets will
drive some consumers and businesses to review new form factors.
"However, to draw their interest the PC manufacturers need to ensure that they
meet demand with the right products at the right price," Atwal said.
-Dylan McGrath covers the semiconductor industry for EE Times.
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