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

Gartner, a leading market research firm, 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 popularity. This growth is largely driven by demand for imported models in emerging markets, particularly from companies like Huawei and Xiaomi, as well as their supply chain partners. It's estimated that by the end of 2016, 82% of all mobile phones sold will be smartphones, marking a 12% increase from 2015. In China and other developing regions, consumers are still favoring affordable, feature-rich smartphones rather than high-end models. Despite the overall growth in shipments, end-user spending on mobile devices is only projected to increase by 1.2%. In the global smartphone market, seven out of the top ten manufacturers are based in mainland China. Huawei, for example, shipped over 100 million units last year, while Xiaomi saw more than 70 million units sold. The rising demand for budget-friendly yet high-quality smartphones is fueling growth in emerging markets. Both Huawei and Xiaomi are expected to continue expanding this year, which will benefit their supply chain partners such as Hon Hai (2317) Group and Inventec (2356), as well as companies like MediaTek, Innolux, and Huihui. Gu Neng, an industry analyst, predicts that local brands in emerging markets and Chinese phone manufacturers will focus on producing practical, cost-effective smartphones. As a result, the demand for upgrading to premium devices may slow down. Entry-level smartphones are designed to meet user needs at a lower price point, offering sufficient performance and features. Looking ahead to the upcoming Mobile World Congress (MWC), Gu Neng expects many Android vendors to unveil next-generation flagship smartphones. He also anticipates a stronger emphasis on differentiation, unique user experiences, and better integration with major app ecosystems. More features and enhanced functionality are likely to be highlighted. Earlier, another market research firm, TrendForce, 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, when the smartphone revolution began. With the market approaching a growth plateau, competition is becoming fiercer, and innovation is key to staying relevant.

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