Technology
5G to bring growth for smartphones players in 2020: IDC
San Francisco, Sep 10
The global smartphone shipments will remain nearly flat in the second half of 2019 while the market declines 2.2 per cent year over year for the full year, making 2019 the third straight year of global contraction, an International Data Corporation (IDC) report said on Tuesday.
The IDC expects shipment growth to reach 1.6 per cent in 2020, pushing smartphone shipment growth back into positive territory with the advent of 5G technology.
"The global smartphone market and relevant supply chains remain uncertain, largely due to fluctuations in U.S-China trade negotiations, making future planning even more challenging than normal," said Sangeetika Srivastava, senior research analyst with IDC's Worldwide Mobile Device Trackers.
Consumers continue to hold their devices for lengthier times making sales difficult for the vendors and channels alike.
"However, expectations of aggressive promotions and offers in the second half of 2019 aimed at helping to clear out any channel inventory and get consumers excited about the next wave of smartphone technology should steer the market back toward renewed growth," Srivastava added.
A ray of hope has arrived for the smartphone world in the form of 5G.
Commercial deployments have begun in many regions and while 2019 is very much an introductory year at best, 2020 looks to be the year where 5G begins to ramp up.
IDC expects 5G shipments to reach 8.9 per cent of smartphones shipped in 2020, accounting for 123.5 million devices shipped. This is expected to grow to 28.1 per cent of worldwide smartphone shipments by 2023.
"To be clear, we don't think 5G will be the savior in smartphones, but we do see it as a critical evolution in mobile technology," said Ryan Reith, Programme Vice President with IDC's Worldwide Mobile Device Trackers.
"The biggest change in our 5G forecast assumptions is that we have lowered average selling prices (ASPs), particularly in China. We also expect a wide range of sub-6GHz 5G smartphones with midrange prices to enter the market in early 2020, if not sooner," he added.
Android's smartphone share will increase to 87 per cent in 2019 from 85.1 per cent in 2018 mostly due to 5G launches and expedited inventory cleanup of older devices.
2019 will remain a challenging year for iPhone shipments with volumes expected to drop to 177.9 million, down 14.8 per cent year over year, mostly due to market maturity as well as a lack of 5G devices.
"However, Apple is likely to deliver 5G handsets later in 2020, which will pick up iOS volumes slightly as it will have an edge over other vendors with a better understanding of 5G market conditions for a much more planned launch," said the report.
The IDC expects shipment growth to reach 1.6 per cent in 2020, pushing smartphone shipment growth back into positive territory with the advent of 5G technology.
"The global smartphone market and relevant supply chains remain uncertain, largely due to fluctuations in U.S-China trade negotiations, making future planning even more challenging than normal," said Sangeetika Srivastava, senior research analyst with IDC's Worldwide Mobile Device Trackers.
Consumers continue to hold their devices for lengthier times making sales difficult for the vendors and channels alike.
"However, expectations of aggressive promotions and offers in the second half of 2019 aimed at helping to clear out any channel inventory and get consumers excited about the next wave of smartphone technology should steer the market back toward renewed growth," Srivastava added.
A ray of hope has arrived for the smartphone world in the form of 5G.
Commercial deployments have begun in many regions and while 2019 is very much an introductory year at best, 2020 looks to be the year where 5G begins to ramp up.
IDC expects 5G shipments to reach 8.9 per cent of smartphones shipped in 2020, accounting for 123.5 million devices shipped. This is expected to grow to 28.1 per cent of worldwide smartphone shipments by 2023.
"To be clear, we don't think 5G will be the savior in smartphones, but we do see it as a critical evolution in mobile technology," said Ryan Reith, Programme Vice President with IDC's Worldwide Mobile Device Trackers.
"The biggest change in our 5G forecast assumptions is that we have lowered average selling prices (ASPs), particularly in China. We also expect a wide range of sub-6GHz 5G smartphones with midrange prices to enter the market in early 2020, if not sooner," he added.
Android's smartphone share will increase to 87 per cent in 2019 from 85.1 per cent in 2018 mostly due to 5G launches and expedited inventory cleanup of older devices.
2019 will remain a challenging year for iPhone shipments with volumes expected to drop to 177.9 million, down 14.8 per cent year over year, mostly due to market maturity as well as a lack of 5G devices.
"However, Apple is likely to deliver 5G handsets later in 2020, which will pick up iOS volumes slightly as it will have an edge over other vendors with a better understanding of 5G market conditions for a much more planned launch," said the report.
54 minutes ago
PM Modi receives grand welcome from Indian community on arrival in US
59 minutes ago
India, US closer than any time in history, says Biden after meeting PM Modi
1 hour ago
PM Modi holds bilateral talks with Biden, discusses global, regional issues: MEA
1 hour ago
PM Modi, Biden say Quad 'is here to stay'
10 hours ago
My mother's house smaller than your car! When PM Modi told former US president Obama
10 hours ago
Georgia Election Board Mandates Hand Count for November Ballots, Sparking Concerns Over Delays and Errors
10 hours ago
Biden set to host PM Modi in hometown Wilmington as Quad leaders intensify partnership
10 hours ago
India and US Must Collaborate to Counter China: Congressman Shri Thanedar Ahead of Quad Summit.
11 hours ago
In-Person Voting Kicks Off in Select US States, Six Weeks Before Election Day
11 hours ago
PM Modi Begins US Visit, Confirms Bilateral Talks with Biden and Participation in Key Events
11 hours ago
Harris Campaign Outspends Trump Nearly Threefold in August
11 hours ago
Secret Service Investigation Reveals Lapses in Security Prior to Trump Rally Shooting
12 hours ago
Vijay Varma shares exclusive moments with Kareena Kapoor Khan from ‘Jaane Jaan’ shoot