Gartner predicts this year: the basic type of smartphone is favored

Gartner, a leading market research agency, recently released its updated forecast. According to the report, global mobile phone shipments are expected to rise by 2.6% this year, with basic smartphones gaining more popularity. The demand for imported models in emerging markets has significantly boosted shipments, particularly benefiting brands like Huawei, Xiaomi, and their supply chain partners. It is estimated that by the end of 2016, 82% of all mobile phones sold will be smartphones—an increase of 12% compared to 2015. In China and other emerging economies, consumers are showing a preference for affordable yet functional smartphones rather than expensive high-end models. This trend reflects a shift toward practicality over luxury in the mobile phone market. Despite the growth in shipments, end-user spending on mobile devices is projected to rise by only 1.2%. Among the top ten smartphone manufacturers globally, seven are mainland Chinese brands. Huawei, for instance, shipped over 100 million units last year and continues to dominate the market. Xiaomi also saw significant growth, with over 70 million units shipped. Emerging markets are increasingly seeking affordable yet high-quality smartphones. As a result, Huawei and Xiaomi are expected to maintain strong growth this year, driving demand across their supply chains, including companies such as Hon Hai Precision (2317) and Inventec (2356). Other key players like MediaTek, Innolux, and Huihui are also benefiting from this trend. Gu Neng, an industry analyst, believes that local brands in emerging markets and Chinese phone manufacturers will continue to launch cost-effective basic smartphones, which meet user needs without unnecessary features. This strategy is expected to reduce the demand for high-end upgrades. These entry-level smartphones offer solid specifications at a lower price point, making them highly appealing to budget-conscious consumers. As the World Mobile Conference (MWC) approaches, Gu Neng noted that many Android vendors will unveil next-generation flagship models. There is growing anticipation for innovations that emphasize differentiation, unique user experiences, and better integration with major app and service ecosystems. Earlier this week, another market research firm, TrendForce, also reported that global smartphone shipments are expected to grow by just 5.8% this year. This marks a slowdown compared to the rapid expansion seen since the launch of the first iPhone in 2007. The smartphone industry is now entering a phase of slower growth, signaling a potential plateau in the market.

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