Smartphone market to see modest growth through 2021: IDC

Apple Stock Hits New High Buy Sell or Hold

The forecast calls for Android shipments to reach 1.479 billion in 2021 for a market share of 85.5 percent and a CAGR of 3.5 percent from 2016-2021. The company has reported $112.5 billion in iPhone sales through the first three quarters of this fiscal year, and analysts project it to sell about $30 billion worth of smartphones in the current quarter, according to FactSet.

The forecast concludes that the premium sector of the smartphone market will continue to grow, with the average selling price of a handset to increase by over seven per cent this year.

There appears to be demand for larger screens, as well as the accompanying features and higher price points.

Despite its decline during the quarter, Apple maintained the top spot in terms of individual vendors, with a 37% market share compared to 34% for Samsung. 003550, +6.20% is introducing a similar V30 smartphone.

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Google's Android will continue to dominate the global operating system market it says, with modest growth of around 2.3 per cent expected this year. Phablets are forecast to make up 40 percent of the smartphone market by the end of 2017 and grow to over 51 percent by 2021.

Apple will remain in second position with a continuation of the 14-15 per cent market share it now enjoys. IDC notes that this is a big improvement over the 7% decline past year.

The firm expects 9.1% shipment growth in 2018 from the iPhone 8 and the new 7S and 7S+ models helping Apple achieve near double-digit growth next year. A major upgrade cycle may hit with the introduction late this year of the iPhone 8, which will arrive late this year. The truth of the situation seems to be that no matter what Apple does it will have a smaller share of the smartphone market in the next few years.

The only thing that could hold Apple and others back in the future is the growing concern that the smartphone market is becoming saturated. IDC estimates only around half the world was using a smartphone at the end of 2016, leaving plenty of room for further market growth.


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