Smartphone market to see growth post 5G: IDC report
The smartphone market is showing signs of recovery in the second half of 2019, and is expected to ramp up in 2020 thanks to 5G, according to the latest forecast from International Data Corporation (IDC).
IDC’s Worldwide Quarterly Mobile Phone Tracker indicates that the market will recover as it moves into 2020. Shipment volumes are expected to be nearly flat at -0.4% for the second half of 2019, with market declines of 2.2% for year over year for all of 2019. This would mean that 2019 will be the third straight year of declining shipments. But in 2020, IDC expects shipments to grow 1.6%, showing a slight increase.
“The global smartphone market and relevant supply chains remain uncertain, largely due to fluctuations in U.S-China trade negotiations, making future planning even more challenging than normal,” said Sangeetika Srivastava, senior research analyst with IDC’s Worldwide Mobile Device Trackers, in a press release. “Consumers continue to hold their devices for lengthier times making sales difficult for the vendors and channels alike. However, expectations of aggressive promotions and offers in the second half of 2019 aimed at helping to clear out any channel inventory and get consumers excited about the next wave of smartphone technology should steer the market back toward renewed growth.”
Global economic uncertainty combined with trade and tariff threats are dominating headlines, but there is hope for the smartphone market in the form of 5G. Commercial deployments have reached many regions and while 2019 is an introductory year, 2020 will be a year where 5G ramps up and increases smartphone growth, according to IDC.