Dive Brief:
- Global smartphone shipments will grow this year by 3% from last year to 1.52 billion, a faster pace than 2016's record-low increase of 2.5%, according to a press release by the IDC. The entry of new mobile devices, including Samsung's Galaxy S8 and Apple’s iPhone 8, are helping to boost sales, the research group said.
- Next year is estimated to be even stronger with 4.5% growth as Apple will have had a full year of shipments and sales in the books, per IDC.
- As smartphone users increase their media consumption on mobile devices, display technology will become a key selling point. Samsung and LG smartphones have borderless 18:9 displays and Apple may introduce a similar model with those dimensions this year.
Dive Insight:
While there has been much discussion of a maturing smartphone market, IDC's numbers suggest growth will accelerate following the rollout of the latest devices. Due to Apple's widespread popularity, the hype surrounding its next iPhone will likely bring a wave of added attention to the industry overall.
Marketers must be aware that Android will likely maintain its dominance over Apple’s iOS with 85% of global smartphone shipments, although many of those devices will sell at the lower pricepoint of the market. Average selling prices of Android phones are sliding toward $198 by 2021, according to IDC’s forecast. Next year, the Middle East and Africa market is estimated to have the fastest-growing Android adoption with a 10% surge, more than 2x the 4.1% global growth forecast.
Earlier this year, Apple CEO Tim Cook blamed the first-ever decline in iPhone sales on media coverage of the next generation of smartphones. The 10th-anniversary edition of the iconic iPhone holds high expectations of helping Apple’s shipments grow 7.5% next year to 240.4 million. People are prepared to be "wowed" by the iPhone 8, which is expected to list for $1,000 or more to cover pricier components like a larger display, 3-D touch sensors, wireless charging and an all-glass chassis without a home button, according to Forbes.
