Skip to main content

Exploring the Global Smartphone Market Momentum

The mobile smartphone business has been a key revenue-generating growth story that we've profiled over the last few years. The overall market outlook continues to be bright -- regardless of the continuation of regional economic uncertainties.

Mobile network subscriber growth has slowed dramatically in the saturated markets, voice and text have reached commodity pricing and margins are shrinking -- yet around the world the appetite for new smartphones continues to gain momentum.

Smartphones are fast becoming the device of choice for hundreds of millions of people, and during 2012 the worldwide smartphone shipments will have reached half a billion units in one year.

According to the finding from the latest market study by Portio Research, the mobile handset industry is a $241 Billion business.

The Key Ongoing Growth Drivers

The worldwide mobile subscriber base is expected to reach 6.5 billion by end-2012, taking global mobile penetration to approximately 91 percent. The subscriber base is forecast to increase at a Compounded Annual Growth Rate (CAGR) of 7.3 percent between end-2011 and end-2016, to reach nearly 8.5 billion by the end of 2016.

This growth will be led by markets in Asia Pacific and Africa. During the period 2011-2016, the subscriber base in the Asia Pacific region is expected to grow at a CAGR of 9 percent; while African markets will witness an average CAGR of 9.4 percent during the same period.

The already advanced markets of North America and Western Europe are approaching saturation, with most of the markets already having close to or more than 100 percent mobile penetration now.

During the period 2009-2011 worldwide handset shipments witnessed significant growth. The overall handset market witnessed a Compounded Annual Growth Rate (CAGR) of 15.3 percent during this period and handset shipments reached 1.549 billion in full-year 2011.

The two key factors that led to this growth were:
  • Increasing mobile penetration in the large emerging markets.
  • The rapid growth in popularity of all-new, fully-featured smartphones, driving mobile handset replacement rates through rapid consumer adoption of these new highly-desirable lifestyle devices.

The mobile handset industry is expected to continue this booming growth phase for the foreseeable future. The overall market will grow at a CAGR of 6.8 percent over the period 2011-2016 and the number of annual handset shipments will cross 2 billion in the year 2015. Overall handset shipments are expected to reach 2.1 billion by the end of full-year 2016.

Representing a huge growth opportunity in the worldwide mobile industry, smartphone shipments continue to grow at a far greater pace than regular handset shipments. While the overall handset shipment business is forecast to grow at an impressive CAGR of 6.8 percent over the period 2011-2016, the latest forecast is that smartphone shipments worldwide will average a CAGR of 17.7 percent during the same time frame.

Smartphone shipments, expressed as a percentage of worldwide handset shipments, are forecast to rise quite dramatically. Smartphones accounted for around 31 percent of total handset shipments in full-year 2011, and this figure is expected to rise to reach 39.1 percent in 2012. Worldwide smartphone shipments will reach 1,095 million by 2016 and account for 51 percent of total handset shipments in that year.

Popular posts from this blog

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

Worldwide Semiconductor Demand will Accelerate in 2021

The technology sector is a key driver of the U.S. economy. Therefore, components like semiconductors play an important role in America's future. The 'CHIPS for America Act' is a new law that calls for incentives on domestic semiconductor manufacturing and investments in research and development. But these renewed efforts will require years of ongoing commitment. Meanwhile, despite the impact of the COVID-19 pandemic, the semiconductor market performed well in 2020. However, new demand by industry was uneven throughout last year due to global lockdowns, remote working adoption, and shifts in consumer and commercial buying behavior. Worldwide semiconductor revenue grew to $464 billion in 2020 -- that's an increase of 10.8 percent compared to 2019, according to the latest market study by International Data Corporation (IDC). Semiconductor Technology Market Development IDC now forecasts that the semiconductor market will reach $522 billion in 2021, that's a 12.5 percent