Smartphone shipments will surpass the 1 billion mark by 2016, according to a recent market research results published by a market research firm called NPD DisplaySearch. This year alone, the shipments are predicted to reach 567 million and double in only four years’ time.
New smartphone releases, such as the announcement of the iPhone 5 this week, are expected to boost the market. The iPhone 5, in particular, will be a significant product during the latter part of 2012. Apple’s figures in the past have done much for the smartphone industry. In 2010 and 2011, the Cupertino company sold 140 million phones, and that number is forecast to rise further with their recent release.
In spite of the hype over the iPhone 5, however, the predicted number of smartphone shipments is said to be lower than earlier expectations. NPD DisplaySearch initially estimated the shipments to be around 220 to 230 million, but it is now calculating that the shipments may just be around 177 million. Meanwhile, the number of replacement phones is growing along with the entrance of new handsets in the market.
Both the high-end and low-end market segments are also shown to be experiencing rapid growth at the moment.
Apart from the launch of new handsets, mobile phone contracts are likely to affect the market. NPD DisplaySearch conjectures that carriers may decrease the cycles of contracts so that consumers will be encouraged to buy newer products.
These data come from NPD DisplaySearch’s study, called Smartphones: Displays, Designs and Functionality, an analysis of smartphone displays and the smartphone industry in general.
With the study, NPD DisplaySearch essentially aimed to offer insights to phone manufacturers on how smartphone displays affect the handsets themselves.
To arrive at these data, the researchers studied market strategies. NPD DisplaySearch supplies analyses, trend research, and market forecasts to more than 2,000 companies, composed of manufacturers, service providers, as well as retailers.