Smartphone Market to Grow 40% in 2013, 1.7B Annually by 2017—IDC Says
Smartphone Market to Grow 40% in 2013, 1.7B Annually by 2017—IDC Says by UCStrategies Staff
Research firm International Data Corp. (IDC) predicts that this year, the smartphone market will grow by 40 percent over 2012 and will ship 1.7 billion handset units annually by 2017. Total sales of mobile phones – over half of which are smartphones – will reach 1.8 billion units through 2013, according to IDC.
“Two years ago, the worldwide smartphone market flirted with shipping half a billion units for the first time – to double that in just two years highlights the ubiquity that smartphones have achieved,” said Ramon Llamas, mobile research manager at IDC. “The smartphone has gone from being a cutting-edge communications tool to becoming an essential component in the everyday lives of billions of consumers.”
In 2012, the overall growth rate of the mobile phone market was at a 1.2 percent standstill. The previous IDC growth rate estimate was at 5.8 percent in 2013, but after a strong market showing during the first half of the year, the research firm changed it to 7.3 percent.
The growth of the smartphone market is attributed by IDC to a variety of factors, which include device subsidies by carriers and the proliferation of sub-$200 smartphone models.
“Aggressive carrier subsidies of handsets, falling prices, higher consumer awareness, and a vast array of devices will mean almost all phones shipped to the developed world will be ‘smart,’” said Kevin Restivo, senior analyst at IDC. “However, smartphone shipment volume will be dominated by emerging markets, such as China, even though the percentage of smartphones to feature phones won't be as high.”
IDC also names Samsung as the top supplier for Android phones this year, with Android-based devices accounting for 75.3 percent of all smartphone shipments.
By 2017, IDC predicts that smartphones will take over most of the mobile phone market in developed countries, including the United States, with Google’s Android and Apple’s iOS as the first and second most popular mobile platforms.
This year, IDC estimates iOS market share to be at 16.9 percent, Windows Phone at 3.9 percent, and BlackBerry at 2.7 percent.
Since Microsoft is purchasing Nokia’s mobile business, IDC claims that there will be a decline in the support of other phone manufacturers for Windows Phone. Microsoft should also grow its share in emerging markets by introducing more low-priced smartphones to those regions, IDC says.
By 2017, IDC forecasts Apple’s market share to grow 17.9 percent, partly as a result of the China Mobile distribution deal which will expand Apple’s foray into the robust smartphone market in China. (KOM) Link. Link.