China may be contributing the lion’s share of global smartphone market growth at over 30 per cent in 2015, but even its appetite has limits.
A new report from market research firm ReportsnReports.com shows that growth is expected to slow down starting next year.
While the overall smartphone market is still growing, it is doing so in the single digits at 4.8 per cent year-on-year in 2015.
Growth until 2019 is expected to hover between 7.1 and 8.1 percent CAGR.
Companies examined in the report include Apple, Blackberry, Google, Huawei, Lenovo, Qualcomm, Samsung, Microsoft, Xiaomi and ZTE.
While it is also known that devices from Asia are driving the trend for lower-priced phones and larger-screened phablets, the trend doesn’t seem to be slowing down.
According to the research, prices of smartphones in the region are “expected to fall even further by 2019.”
“The market is witnessing a trend towards larger screen sizes, with many top smartphones sporting screens ranging from five to seven inches,” the company said in a statement. “Due to the consumption of a large amount of content online, consumers are demanding bigger and better displays, which are expected to fuel the global smartphone market in the coming years.”
This will likely result in a margin squeeze on panel makers.
The industry, which is juggling the low-cost trend with the demand for bigger better screens are seeing the small and medium panel sectors affected, in particular.
“Sub-brands either feature same specs at lower prices, higher specs at similar prices or higher specs at lower prices, compared to their major branded products,” researchers said.