After years of growth, the stagnation of the global smartphone market has been stagnating, and in 2018, for the first time in 2018, there has been a year-on-year decline of just over one percent.
According to Counterpoint's latest smartphone forecast, smartphone growth will fall by 1.3 percent in 2018. This is the first in the history of smartphones that the market closed year on year (YoY).
The smartphone market has seen negative growth since the fourth quarter of 2017, and the negative trend is expected to continue in September and the previous quarter.
"Many markets have already reached the point of saturation for new smartphone demand and are dependent on spare demand, but since last year, consumers have decided to trade whenever they have a chance, and despite the price difference, they are going to better equipment," said Tom Kang, Director Research, Counterpoint Research.
"It's clear last year's Apple iPhone X. But buying a more expensive device means extending the length of spare cycles, especially if your revenue is limited," Kang added.
Poor demand has been caused by several factors – from the slowdown in the global economy and exchange rates in emerging markets that have changed rapidly, as in Latin America.
"Some markets are cooling down after years of overcoming because of extreme competition, but the core of the weak demand may be a change in consumer behavior," the report said.
Next year, it is unlikely that it will be much different as the trend continues with the new Apple iPhone Xs Max introduced at a higher price point and with a tilting Samsung smartphone that will soon emerge and the 5G device will be on the horizon.
"Overall, smartphone revenue could grow by 9 percent over last year, which is even more than 7 percent revenue growth in 2017," Kang added.