Businesses need to adapt to the times in order to survive.  Keeping up with competition is important but being ahead of the competition is even better! Telecom Expense Management is keeping an eye on the global business events and ready to adapt along with them.  In recent news, it was declared that smartphone sales growth are dropping.

EnterpriseMobilityGrowth_EN

There is a saying that goes, all good things come to an end and that’s true in the world of IT.  Specifically speaking, the smartphone market. Gartner forecasts that the sales growth of the smartphone market will continue to fall as it moves closer towards saturation.

Gartner made a comparison between the smartphone market growth from 2015 and 2016.  They discovered that there has been a decrease of approximately 50% in smartphone growth sales.  The rate of growth in 2015 was 14.4% and now the growth rate for 2016 is 7%. Let’s walk through the reasons why there has been such a significant decrease.

 

Smartphone Sales Growth & Telecom

The smartphone sales growth market in the West (North America, Western Europe) is saturated.  The majority of people own a smartphone and are not replacing their old ones or upgrading their phones.  The reason is that each succession of smartphones has improved upon each other but has done so in part and at a hefty price.  Individuals are not wowed by these differences and are willing to skip to the proceeding model.  Moreover, nearly everyone has a smartphone.  There aren’t many new people looking to get another smartphone. Communication service providers (CSP) stopped subsidizing free smartphones every two years which has increased the threshold of when consumers upgrade their smartphones which doesn’t help the situation either.

Things aren’t that much better for China as it is approaching market maturity in smartphone growth.  China has the largest smartphone market but it’s not growing like it was before. Last year (2015), China represented 95% of total mobile phones sales.  Since China has such a big presence in the smartphone market it’s to be expected because as they slowdown it creates a huge wave in the global smartphone market.  In addition to approaching saturation, smartphone vendors are having difficulty convincing Chinese smartphone holders to upgrade their devices.  Actually they are having more trouble with getting them to upgrade than converting first time buyers.

Your Wireless Expense Management provider is ready to address this for businesses as it is extremely important to track accounts so that prices are being paid according to the services that they are using.  Whether employees are replacing their phones or keeping the ones they have, it important to know the frequency of use and the cost that incurred. Do you have employees assigned with two smartphones instead of only one? Are they even using the extra phone? Is money wasted supporting two devices for one person? Wireless Expense Management will be able to answer those questions and help you save money by helping you better manage your IT expenses.  Having the vision as to how employees are using their mobile devices will enable employees to have visibility over their usage and encourage them to take self-regulating steps to address it.

 

New Upcoming Markets for Smartphone

Gartner sees an opportunity for smartphone growth in India.  India is presently the market leader for featured phones.  (Featured phones are mobile phones before they became smart phones.)  According to Gartner’s findings 167 million units of featured phones were sold in 2015.  That’s approximately 61% of total mobile phone sales in India.  Smartphones are considered expensive in India but the average selling price of low end models are decreasing. Gartner estimates that in 2016, 139 million smartphones will be sold in India and will continue to grow at a yearly rate of 29.5%.

Sub-Saharan African regions showed up on the radar as a potential area to attract smartphone vendors as smartphones have started to exceed the sales of featured for the first time last year.

Wherever there is an opportunity for business mobile device to be used; there is also an opportunity for Wireless Expense Management.

 

New Strategies for Saturated Regions

As the markets for smartphones move towards saturation, Gartner argues that smartphones will soon no longer compete in providing the best device specs but rather they will compete for providing the best user experience for their customer.  Roberta Cozza, research director at Gartner presented examples of how companies may create more functions for smartphones such as:

  • Adding virtual reality and supporting the connected home (Internet of things).
  • Combining Game Console Network and music divisions.
  • Adding mods to provide projector functionality for movies and photos among other new functionalities.

So what does smartphone saturation mean for wireless expense management?  The industry is hinting at moving away from offering the same types of upgrades (flashier screen, better specs, faster processor) and moving towards smartphones functionality thereby ushering in a new era of smartphone capabilities.  Whatever the case, wireless expense management stands ready. It means that there will be an increase in the complexity of managing bills and keeping track of those functionality.  There will be more help desk questions.

IT is constantly changing and making progress in the industry.  Where will it be in the next 10 years, only time will tell but wherever it will be, Wireless Expense Management stands ready!

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