CCS Insight: Smartphone sales to grow by a third to 2bn by 2019

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Smartphones will continue to dominate, accounting for 72 per cent of all shipments in four years 

The global mobile phone market is expected to reach 2.24 billion unit sales in 2019, with smartphone shipments set to grow by a third to almost two million.

This is according to the latest Worldwide Mobile Phone Forecast, 2015-2019 from research and analyst house CCS Insight. These figures in four years time will compare to projected mobile phone shipments of 2.01 billion in 2015, of which 1.45 billion will be smartphones.

CCS Insight is predicting 770 million 4G handsets will be sold this year, up 75 per cent from 2014, with China making up more than a third of the volume. The number of 4G handsets sold is forecast to double to 1.44 billion in 2019.

Despite Apple being the most profitable smartphone manufacturer at present, CCS said that with market growth in China depleted, most of the big increases in mobile sales are being fuelled by inexpensive Android smartphones in emerging markets, where the majority can’t afford Apple products.

Badyal notes: “Apple is banking on its instalment plans stimulating early and predictable replacement sales among the most loyal US iPhone owners, and we predict it will take a similar approach in other key markets. This will help Apple maintain its current global market share for at least the next two years.”

CCS also believes it is inevitable there will be casualties among Android smartphone brands as manufacturers find it hard to differentiate on almost anything other than price. It added that although Android’s ASP rose 14 per cent to $659 in the first half of this year, it expects the average manufacturer price of Android handsets will fall eight per cent this year to $164.

 

In conclusion, CCS said the dominance of Android and iOS means there is little opportunity for other operating systems. It added Windows is struggling to remain relevant in consumer smartphones but there is a glimmer of hope in the business market, with users helping the OS retain market share of four per cent on mobile phones in 2017.

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