Cheap devices and African market to
power global smartphone growth
By DUNCAN ALFREDS
G
lobal smartphone shipments are
losing steam but lower priced devices
and the African market are likely to be an
engine of growth, says an international
research organisation. The International Data
Corporation (IDC) recently forecast that global
smartphone growth will hit 9.8% in 2015 —
the segment’s first ever single-digit growth.
The IDC attributed the slowdown to declining
demand in China, but the research organisation
has argued that lower-priced smartphones are
expected to drive growth in Africa and other
parts of the globe. "The smartphone growth
will come from the low-priced smartphones
(under $150)," said Joseph Hlongwane, an IDC
SA research analyst. Further IDC data showed
that shipments to the Middle East and Africa
are set to grow at 50%, surpassing those to
India and Indonesia. "With the other regions
slowing down, Africa has become very crucial
to manufacturers. Africa’s smartphone market
is expected to grow — especially the low priced
smartphone segment. However, the key for
success in Africa will be to launch the right
product at the right price point," Mr Hlongwane
said.
The IDC said that Android will marginally
increase its global market share from 81%
to 82%, while Apple’s iOS operating system
for iPhones should remain flat at about 14%.
Microsoft would see a 10.2% decline in its
global market share despite investments in
its Windows operating system. Meanwhile,
Chinese manufactures such as ZTE and Xiaomi
have already actively targeted the lower price
market segment in Africa.
"I think that the diversity in Android is the
driver of its success. The Android Operating
System offers the consumer a variety of
handsets brands and models to choose from,
and a broad range of prices. Due to these
reasons, I see Android OS dominating the
smartphone market for many years to come,"
said Mr Hlongwane.
FARMERS GAZETTE
November 2015
49