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Mobile phone shipments are on pace to increase 2.6 percent in 2016. “Constant end-user spending on mobile phones is expected to increase by 1.2 percent in 2016, but its growth will not be strong enough for overall end-user device spend to achieve growth in 2016,” said Roberta Cozza, research director at Gartner.
Smartphone shipments continued to drive growth, and Gartner estimates that, by the end of 2016, 82 percent of mobile phones will be smartphones, up 12 percent from 2015. “We are witnessing a shift to basic phones in the smartphone market,” Ms. Cozza said. “Users are also opting to replace within the basic smartphone category without necessarily moving to high-end smartphones, especially in China and some other emerging markets.”
Local and Chinese brands are delivering more capable basic smartphones with appealing features at a lower price, which means that there is less of a need for users to upgrade to a premium smartphone. Instead, these more advanced and attractive basic smartphones fulfil user’s needs at a lower cost.
“At MWC 2016, a number of Android vendors will, as usual, release the next generation of their smartphone flagships,” said Ms. Cozza. “We’ll hopefully see an increased focus on differentiation by enabling unique, but relevant experiences, expansion to new functionalities and better tie to key app and service ecosystems.”
About Gartner
Gartner, Inc. is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 7,600 associates, including more than 1,500 research analysts and consultants, and clients in 90 countries.
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