Growth in the worldwide
mobile phone market is forecast to slow to 1.4 percent this year, due to the
weak global economy, International Data Corporation (IDC) predicts.
This is the lowest
annual growth rate in three years, despite a projected record number of
smartphone shipments in the holiday season. Vendors are estimated to ship more
than 1.7 billion mobile phones this year, rising to 2.2 billion in 2016.
For the fourth quarter
of 2012, IDC forecast smartphone shipments of 224.5 million, up 39.5 per cent
year-over-year. Over the full year 2012, smartphone shipments are forecast to
grow 45.1 per cent to 717.5 million units. Smartphone growth is driven by new
flagship devices, such as Apple's iPhone 5 and Samsung’s Galaxy S3, as well as
lower-cost Android phones shipped to China and other emerging markets.
IDC expects Android will
maintain its lead among smartphone OS, with a share of 63.8 per cent in 2016.
Windows Phone will show the fastest growth over the period, at a compound
annual growth rate of 71.3 per cent, to reach an estimated market share of 11.4
per cent in 2016.
Likewise, the global
telecom sector is under pressure from a number of sources like cable operators,
over-the-top providers such as Google and WhatsApp, and newcomers in the mobile
market. At the same time, the level of investment is high, due to spectrum
auctions and the roll-out of next-generation networks for fiber-to-the-home and
long term evolution, it added.
The operators are
using various ways to cut down costs like network sharing and local mergers for
cost savings. Some are listing subsidiaries on the stock market, splitting up
the company and lobbying with the national regulators and at the International
Telecommunication Union for a more friendly regime
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