Table: IDC worldwide mobile phone tracker 2012 Q2 forecast release
 

Top 5 markets for smartphone shipments

As it becomes the leading country for smartphone shipments this year, the PRC smartphone market will continue to grow, primarily on demand for lower-cost handsets, according to the IDC.  Over the course of the forecast, however, the firm said that China’s share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.

Despite being relegated to second place, smartphone shipments into the United States will increase as users upgrade their devices and feature-phone users switch over to smartphones. Additionally, a combination of lower-priced models, expansion of 4G networks, as well as the proliferation of shared data plans will encourage continued smartphone adoption Stateside.

With smartphone penetration in India currently among the lowest in Asia/Pacific, this market has significant growth potential. According to the IDC, low-end smartphones offering dual-SIM capability, a high level of locally developed applications and budget devices (R1 600 and less) will rapidly boost the Indian smartphone market.

Smartphone growth in Brazil will be bolstered by strategic investments by mobile operators, smartphone vendors, and regulators. The IDC stated that the Brazilian government will offer tax exemptions for smartphones and protect local manufacturing against foreign vendors. These factors, combined with solid end-user demand, will drive smartphone volumes in the coming years.

The UK has been one of the fastest growing smartphone markets in Western Europe, driven by the high operator subsidies and long-term post-paid contracts. Over the forecast period, smartphone shipments will continue to grow on the back of the introduction of LTE (4G) and a new range of services that will appeal to heavy smartphone users.

Growth rates will slow in the later years of the forecast, due to smartphone penetration plateauing off and operators seeking out alternative subsidy models.

 

 

“The fact that China will overtake the United States in smartphone shipments does not mean that the US smartphone market is grinding to a halt,” explained Ramon Llamas, senior research analyst with IDC’s mobile phone technology and trends program. “Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities.”

In related news, the IDC also recently revealed that Android and iOS reach new smartphone OS (operating system) record in Q2 2012, as 85% of all smartphones shipped during that period were powered by these two mobile platforms.