Media Contact

Ms. Pinchun Chou

Tel: +886-2-8978-6488 ext.669

Ms. Lindsay Hou

Tel: +886-2-8978-6488 ext.667

RSS Subscription
  DRAM  
  NAND Flash  
  Storage  
  Display  
  Consumer Electronics  
  LED  
  Green Energy  
  Internet of Things  
  Semiconductors  
  Automotive Electronics  
  Innovative Technological Applications  
       

Press Release


TrendForce Finds 2016 Global Smartphone Shipment Growth Down to 5.8% and Expects Even Apple to Face Single-Digit Growth Next Year

Tuesday , 09 / 08 / 2015 [ Analysts: TrendForce ]

The latest report from the global market research firm TrendForce projects that the 2016 global smartphone shipments will be at 1.34 billion units, showing just a 5.8% annual growth as well as a consecutive decline from the estimated 8.3% annual growth of this year. According to TrendForce’s smartphone analyst Avril Wu, 2015 marks the end of the smartphone boom that began with the launch of the iPhone in 2007. “The industry from this year on will not be able to deliver the same impressive results of the past years, when shipment increases were upwards of 30%,” Wu said, “Smartphone growth trend is coming to a plateau period.”

The sales of iPhone 6 and 6 Plus stayed hot throughout the first half of 2015, unaffected by seasonality influences. As a result, Apple will see its annual iPhone shipment growth close to 16% this year, totaling 223 million units. However, the next iPhone (also referred to as iPhone 6S) focuses only on hardware upgrades and is similar to the current iPhone models in appearance. Furthermore, several rival brands have released their latest models ahead of the next iPhone’s launch in September. Samsung deliberately launched Galaxy Note 5 earlier, and so did Huawei with its Mate S featuring Force Touch and Sony with its Xperia Z5 Premium, which is the first smartphone with a 4K display. These competing devices and the next iPhone’s lack of fresh looks will have a tangible impact on iPhone sales next year. In sum, Apple is also moving into a plateau growth period, and TrendForce expects the vendor to see its first ever single-digit iPhone shipment growth in 2016 at about 7.5%.

Rising Chinese brands are bringing in a new round competition that will phase out some weaker players

Though the projected global smartphone shipment growth for 2016 is reduced to a low 5.8%, TrendForce expects Chinese brands will be able to maintain shipment increases of at least 10% annually next year, with their combined shipments totaling around 576 million units. “Our smartphone shipment data for the second quarter of this year shows that 7 out of the top 10 global smartphone vendors are Chinese,” said Wu, “They have shown themselves to be highly competitive, driving a new round of global industry restructuring as they steadily gain grounds over other global brands, such as Microsoft, Sony and HTC.”

From the standpoint of product cost structure, at least 80% of components for Chinese branded smartphones are sourced from foreign suppliers. Therefore, the Chinese government has been encouraging the domestic smartphone industry to transform its role from manufacturing to independent R&D. The expectation is that Chinese companies eventually will be participating in the configuration and standardization of smartphone specs. Huawei using smartphone chips from its subsidiary HiSilicon is a case in point. Another notable example is Spreadtrum’s efforts to enhance its R&D through its collaboration with Intel. The Chinese government has furthermore targeted DRAM production for strategic investments as it aspires to create domestic rivals to South Korean and U.S. companies that can develop DRAM components in house. “The strengths of Chinese smartphone vendors will become quite formidable if they are able to obtain key component technologies without significant hindrances,” said Wu, “And in the next 10 years the focus of the industry’s attention will be on how the Chinese ‘Red Supply Chain’ is established in such a way that assists Chinese smartphone vendors to expand globally.”

To keep updated with our press releases, please follow our social media pages. facebookGoogle+TwitterLinkin

smartphone production Smartphone iPhone 6 iPhone 6S Samsung Force Touch 4k Apple Huawei China Microsoft Sony HTC Hisilicon Chinese Red Supply Chain China

TrendForce Press Center Copyright Notice
TrendForce grants you a limited license to use and/or republish any of the press releases on TrendForce Press Center for any legitimate media purpose (including copying and redistributing the content of press releases in any format and via any outlets), provided that you follow these license terms:

1. Reference TrendForce as the source on your works, or include a hyperlink to the original release on the TrendForce site.
2. Do not modify any press release wording, or maliciously alter its related information. Users are subject to any civil or criminal liabilities if the information displayed in the copy or redistribution of press releases is inconsistent with the original materials on TrendForce Press Center.
3. Do not modify or add hyperlinks, including but not limited to adlinks, within the press release. The authorization of press releases on TrendForce Press Center does not grant users the right to suggest, approve or endorse their value-added derivatives on behalf of this body.

If your citations of press releases contain mistakes and/or have information missing, TrendForce may, in its sole discretion, direct you to remove the content distributed via TrendForce from your site at any time and for any reason, and you agree to comply with such request.