Economic woes slow mobile phone market: survey

The worldwide mobile phone market is expected to grow this year at its slowest pace since 2009, hurt by sluggish economic conditions, a survey showed Wednesday.

The research firm IDC said global shipments will rise an estimated four percent in 2012, with many users of older phones holding on to their devices before switching to a smartphone.

The consultancy said a total of nearly 1.8 billion mobile phones will be shipped this year, compared to 1.7 billion in 2011.

By the end of 2016, IDC forecasts sales of 2.3 billion mobile phones.

IDC projected a 10 percent drop in sales of "feature phones" this year.

"Many owners of feature phones, sometimes known as 'talk and text' devices, are holding on to their phones in light of uncertain job and economic prospects," IDC said.

"Despite the decline in shipments, feature phones will still comprise 61.6 percent of the total mobile phone market this year."

The number of smartphones sold will grow 38.8 percent to 686 million units this year, IDC said.

"The smartphone parade won't be as lively this year as it has been in past," said Kevin Restivo, senior research analyst with IDC.

"The mobile phone user transition from feature phones to smartphones will continue in a gradual but unabated fashion. Smartphone growth, however, will increasingly be driven by a triumvirate of smartphone operating systems, namely Android, iOS and Windows Phone 7."

According to IDC, the Google Android operating system will boost its share of the smartphone market to 61 percent, but then taper off amid competition from others, including those using Microsoft Windows.

"Android will maintain leadership throughout our forecast, while others will gain more mobile operator partnerships (Apple) or currently find themselves in the midst of a major transition (BlackBerry and Windows Phone/Windows Mobile)," IDC analyst Ramon Llamas said.

"What remains to be seen is how these different operating systems -- as well as others -- will define and shape the user experience beyond what we see today in order to attract new customers and encourage replacements."

The IDC report sees the strongest growth in the coming years from Windows smartphones, from 5.2 percent of the market this year to 19.2 percent in 2016.

During the same period, the Apple iPhone will see its market share slip from 20.5 percent to 19 percent, with the number of iPhones growing at a slower pace than the overall market.

IDC sees the BlackBerry holding virtually unchanged from six percent of the smartphone market in 2012 to 5.9 percent in 2016.

"There will continue to be a market for BlackBerry OS-powered devices, despite Research In Motion's current woes," IDC said.

"This is true in emerging markets, for example, where users are looking for affordable messaging devices," IDC said.

"However, the gulf between the BlackBerry OS and its primary competition will widen over the forecast as the mobile phone market becomes increasingly software/app-oriented and the 'bring your own device' enterprise trend proliferates.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • China ignores global outcry vs reclamation
    China ignores global outcry vs reclamation

    On Wednesday, G-7 foreign ministers issued a Declaration on Maritime Security expressing alarm over “unilateral actions, such as large scale land reclamation, which change the status quo and increase tensions” in the region. In their communiqué, which did not specifically mention China, the ministers expressed belief that reclamation activities were meant to “change the status quo” in the West Philippine Sea and South China Sea, through which 40 percent of global trade passes. …

  • Project NOAH exec receives recognition
    Project NOAH exec receives recognition

    Project NOAH executive director and University of the Philippines professor Mahar Lagmay recently received recognition from the European Geosciences Union (EGU) for his work in disaster risk reduction and mitigation in the Philippines. …

  • Nightclub ban for US troops
    Nightclub ban for US troops

    The US Pacific Command has banned its troops in the Philippines from bars and nightclubs, a spokesman said yesterday, with the trial under way of a US Marine accused of murdering a transgender Filipino he met in a bar. Thousands of American and Filipino soldiers will kick off tomorrow the 10-day annual military exercises, according to Capt. Alex Lim, a spokesman for the US forces, but there will be strict controls on their free time. Lim would not say why the restrictions were imposed but …

  • US-Phl war games to start under China’s shadow
    US-Phl war games to start under China’s shadow

    Thousands of American and Filipino soldiers will kick off tomorrow expanded wargames, showcasing a deepening  defense alliance as alarm bells ring over China. The 10-day exercises in the Philippines are an annual affair between the longtime allies, but this time they will involve double the number of soldiers as last year in a sign of their expanding military partnership. The Philippines is seeking more US military and diplomatic support to fend off China’s increasing forcefulness in its bid …

  • Palace defends legal tack in sea row
    Palace defends legal tack in sea row

    There is nothing weak about taking the legal and diplomatic approach to push for the country’s claims in the disputed West Philippine Sea, Malacañang maintained yesterday. On Friday, Bayan Muna Rep. Neri Colmenares led a rally in front of the Chinese consulate in Makati City to protest China’s massive reclamation activities in the Spratly island group to fortify its presence in the disputed waters. Colmenares also criticized the Philippine government for supposedly not doing enough to defend …

  • Veloso sons urge authorities to save mother from death
    Veloso sons urge authorities to save mother from death

    The sons of Mary Jane Veloso, who is facing execution in Indonesia for drug smuggling, yesterday appealed to government officials to do everything to spare their mother from death. “We love you,” Mark Daniel, 12, said when asked for a message for his mother following a press conference at the University of the Philippines in Diliman, Quezon City. Mark Daniel, an incoming Grade 8 student, reiterated his appeal to those in power to help save his mother from death. His younger brother, …

  • US-Philippines wargames to start under China's shadow
    US-Philippines wargames to start under China's shadow

    Thousands of American and Filipino soldiers on Monday will kick off expanded wargames, showcasing a deepening defence alliance as alarm bells ring over China. The 10-day exercises in the Philippines are an annual affair between the longtime allies, but this time they will involve double the number of soldiers as last year in a sign of their expanding military partnership. The Philippines is seeking more US military and diplomatic support to fend off China's increasing forcefulness in its bid …

  • Bar ban for US troops in Philippines amid murder trial
    Bar ban for US troops in Philippines amid murder trial

    The US Pacific Command has banned its troops in the Philippines from bars and nightclubs, a spokesman said Saturday, with the trial under way of a US Marine accused of murdering a transgender Filipina he met in a bar. Thousands of American and Filipino soldiers will on Monday kick off 10-day annual military excercises, according to Captain Alex Lim, a spokesman for the US forces, but there will be strict controls on their free time. Lim would not say why the restrictions were imposed but …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options