The dizzying rise in smartphone sales is set to slow down next year. According to research from TrendForce, production of the devices grew last year by 6.5%, but growth is expected to be just 5% in the coming year.
The previous year’s rise had been driven by a boom in smartphone production by Chinese manufacturers. The coming year, however, will see the costs of components continue to rise and it’s doubtful whether sales will rise sufficiently to fully meet those additional costs.
The last couple of years have seen exceptional growth by Chinese vendors. Last year, Xiaomi recorded a 76% rise in smartphone production, partly because the company improved its distribution channels and partly because it increased sales overseas. Oppo and Vivo weren’t quite so strong, the companies saw increases of 17.8% and 19.5% respectively, although it’s expected that there will be a decline in production this coming year.
Chinese boom
Much of the 2017 growth was driven by the strong performances of Chinese manufacturers, aided by 4G subsidies; there’s not expected to be a similar rise this year. However, TrendForce does predict that non-Chinese vendors are expected to make a comeback after a couple of years in decline.
In particular, TrendForce predicts that iPhone sales will see an increase of 7.5%, thanks to its improve Face ID technology and screen to body ratio. In addition, the company plans to increase the memory content and embed AMOLED display in two of its models, making it more attractive to customers.
Conversely, Samsung is in for a more uncertain time, despite its position as market leader. Last year, the company recorded a 3% increase in smartphone sales, shifting 320 million units worldwide.
from TechRadar: Phone and communications news http://www.techradar.com/news/global-smartphone-sales-to-slow
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