After years of growth, the global smartphone market has suffered a downturn and for the first time in 2018, Counterpoint Research said it will be down about 1% a year.
According to Counterpoint's latest smartphone forecast report, smartphone growth is expected to fall 1.3% in 2018. This is the first time in the history of smartphones that YoY YoY decline.
The smartphone market has been experiencing negative growth since the fourth quarter of 2017, and negative growth is expected to continue in the September and December quarter.
"Many markets are already saturated with new smartphone demand and depend on replacement demand," he said. "Last year, consumers decided to trade whenever they had an opportunity, so they wanted a better device despite price differences. "Said Tom Kang, research director at Counterpoint Research.
"It's clear that Apple's iPhone X was released last year, but if the price is high, we need to extend the replacement cycle when revenue is limited," he added.
Weak demand is due to a number of factors, including the slowdown in the global economy and the volatility of emerging market currencies as in Latin America.
"The US and China tariff wars have not helped the situation, as some markets have cooled down due to extreme competition for years of excessive market conditions, but the key to sluggish demand may be a change in consumer behavior," the report added.
Next year, the new Apple iPhone Xs Max will be available at a higher price point, and the trend is not likely to change as soon as Samsung Electronics folding smartphones and upcoming 5G devices are introduced.
"Overall, smartphone revenue is expected to grow 9 percent year-over-year, far higher than the 7 percent revenue growth in 2017," he added.