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This Market Has Changed – One Plot That Explains The Global Smartphone Market

This Market Has Changed – One Plot That Explains The Global Smartphone Market
Global smartphone shipments forecast from 2010 to 2018*(in million units)

Much has been written about poor Q4 2018 quarterly records from Apple and Samsung on smartphone shipments. The immediate future may not be different for the sector –  a piece from Nikkei seems like even upcoming quarters may not offer new trajectories. Largely, it does seem like smartphone market is maturing, similar to what happened in the PC and laptop markets many years ago. A shown in the plot below, the peak might have been attained already, so it can only go lower.

Apple is cutting its current production plan for new iPhones by about 10% for the next three months in a sign that the U.S. smartphone maker is expecting a further hit this year, just a week after its market-shaking revelation that it would miss revenue forecasts at the end of 2018.

Apple late last month asked its suppliers to produce fewer of its new iPhones than planned for the January-March quarter, sources with knowledge of the request told the Nikkei Asian Review. It is the second time in two months that the U.S. company has trimmed its planned production for the flagship device.

The request was made before the shock warning issued on Jan. 2 in which Apple said revenues for the final three months of the year would come in at about $84 billion, against previous guidance of $89 billion to $93 billion. That warning — the first reduction in revenue guidance in 16 years — triggered a sell-off in stock markets around the world as investors fretted that it is another sign of a slowing Chinese economy.

Global smartphone shipments forecast from 2010 to 2018*(in million units)

 


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