For the past two years, smartphone shipments have grown higher every consecutive quarter. But this trend could come to a halt in the first quarter of 2014. TrendForce reports that worldwide smartphone shipments reached 265 million units in Q4 2013, a growth of 6.5% over the previous quarter. But it expects shipments to drop about 5.1% in Q1 2014 due to “pressures related to inventory digestion mounting.”
If projections for the rest of 2014 are any indication, this slow down has less to do with a glut of inventory than with a waning love affair with smartphones. With the smartphone market maturing, TrendForce analyst Wilson Miao explains that we are starting to see the effects of seasonality play a role in shipment volumes. The last quarter of the year is often the busiest quarter because of the holiday shopping season with a pull-back following in the next quarter (as we pay off our holiday bills). Starting in Q2, it looks like smartphone sales will bounce back and eclipse 2013 volumes. With 2013 shipments coming at 945 million units, 2014 could be a billion unit year!
Apple and Samsung are set to continue to dominate the smartphone market. Their Q4 2013 global smartphone market share came in at 49% with Samsung at the top with a 30% share. But their reign at the top will increasingly be challenged by ” two noteworthy ‘dark horses'” in 2014. Both Sony and LG made significant strides forward in 2013 and are expected to carry this momentum into 2014.
Source : TrendForce