Consumers in Mature Markets Will Use and Own Three to Four Devices By 2018

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During the next five years, consumers will add more devices to their personal portfolio rather than consolidating it, according to Gartner, Inc. By 2018, a consumer in a mature market will use and own more than three personal devices.

Gartner estimates that in 2016, the installed base of devices will total 7.8 billion units (including wearables, phones, tablets and PCs) and is on pace to reach 8.3 billion units in 2018.

"The combination of the high level of adoption of technology, the availability of faster networks, and decision making becoming increasingly dependent on real-time information, will undoubtedly lead to more devices per user," said Anshul Gupta, research director at Gartner.

Gartner expects mature market users to use three to four personal devices from a mix of "main" and "niche" devices. Main devices will include smartphones, tablets, convertibles (two-in-one devices) and notebooks, and will contribute to more than two devices per person at any time. Niche devices will include a growing range of wearables such as smart watches, health bands, smart glasses and new types of connected devices such as smart cards, e-readers and portable cameras.

Gartner has made several more predictions for the personal device market, including:

By 2018, at least one non-traditional phone maker will be among the top five smartphone brands in China.

"Chinese Internet companies are investing aggressively in mobile device hardware development, platforms and distribution to secure a prominent position in the smartphone market," said CK Lu, principal research analyst at Gartner. "They are not only keen to increase user loyalty and engagement through partnerships and investments, but also willing to sacrifice today's hardware revenue in order to secure higher net worth and a more profitable revenue stream in the future."

As a result, the smartphone segment is becoming increasingly competitive and complex, and the way in which value is derived from it is also changing. "The smartphone market will become more fluid and will allow new players to enter it," added Mr. Lu. "The entrance of Chinese Internet companies will put further pressure on traditional smartphone vendors, who will be forced to innovate beyond hardware in order to stay in the game."

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