Smartphone shipments are forecast to reach 567 million in 2012, and nearly double by 2016 as new phones such as the new iPhone 5 continue to enter the market.
According to Hiroshi Hayase, vice president, small/medium displays for NPD DisplaySearch, “Apple’s iPhone 5 will be a key product for the smartphone market in the second half of 2012. Apple shipped more than 140 million phones in 2010 and 2011, so we can expect smartphone shipments to continue flourishing as users upgrade to the new iPhone.”
Despite the excitement surrounding the new iPhone, the volume of new smartphone shipments is lower than expected. NPD DisplaySearch downgraded its 2012 forecast of new purchases from 220-230 million to 177 million. The volume of replacement phones; however, is expected to increase as new smartphones enter the market.
“The timing of mobile phone contracts can also impact the smartphone market,” said Hayase. “More service providers are likely to shorten mobile phone replacement cycles in an effort to boost sales.”
The NPD Group is a provider of consumer and retail information for a range of industries.