Smart Phone Sales Slowdown

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Gartner has reported a 9.7 per cent increase in smart phone sales, rising to 403 million units in 2015.

But it says this has been their slowest rate of growth since 2008.

All up, smartphone sales reached 1.4 billion units in 2015, an increase of 14.4 per cent from 2014.

Gartner research director Anshul Gupta said there were several factors driving the market.

“Low-cost smartphones in emerging markets, and strong demand for premium smartphones, continued to be the driving factors,” Gupta said.

““An aggressive pricing from local and Chinese brands in the midrange and entry-level segments of emerging markets led to consumers upgrading more quickly to affordable smartphones.”

Gupta said 85 per cent of users in the emerging Asia/Pacific market are replacing their current midrange phone with the same category of phone.

At the same time, currency devaluations against the US dollar are now putting pressure on vendors importing devices.

With the currency devaluations and rising US dollar, many vendors are now considering setting up manufacturing operations in India and Indonesia.

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