International Data Corp. has not been too bullish on the smartphone market this year. It’s latest bit of news shows that even more so, as the research firm slashed its shipments forecast for the year.
Unit sales will come in around 1.46 billion for the year, an increase of just 1.6% this year, according to IDC. This is in contrast from the firm’s previous estimate, calling for global growth of 3.1%.
What’s behind the fall? IDC pins some of the reasoning on the idea that users are simply replacing old models, not purchasing new units. “From a technological standpoint, smartphone innovation seems to be in a lull as consumers are becoming increasingly comfortable with ‘good enough’ smartphones,” said Jitesh Ubrani, a IDC senior research.
Larger-screened smartphones are expected to see superior growth, while IDC did blame some of the shortfall on the fact that consumers are waiting for Apple’s new iPhone.
