Global smartphone shipments might slip for the third year in a row

According to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker report published yesterday, global smartphone shipments are expected to fall 1.9 percent compared to 2018. If the prediction holds true, this will mark the third straight year of decreasing shipments.

Based on the report, shipments in the first half of 2019 will decrease 5.5 percent relative to the same time period in 2018. The IDC partially blamed the slowing transition from feature phones to smartphones for the lower number of shipments. It also mentioned the ongoing trade dispute between the U.S. and China and the increasing prices of flagship smartphones.

Seemingly worst off is Apple, which the IDC predicted will see a 12.1-percent decrease in new iPhone shipments year-over-year. The report noted that Apple is selling more refurbished iPhones, with the company also expanding its services business. Apple’s services revenue reached an all-time high of $11.5 billion in Q2 2019.

There’s some light at the end of the tunnel, however. We might see a 1.4-percent growth in smartphone shipments during the second half of 2019 due to 5G, more lower-priced smartphones hitting the market, and the booming Indian smartphone market.

The IDC also predicted an increase in Android’s market share, from 85.1 percent in 2018 to 86.7 percent in 2019. It mostly attributed the increase to new smartphone models, some of which feature 5G connectivity. Notable 5G smartphones include the LG V50 ThinQ and Samsung Galaxy S10 5G.

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