News Column

Smartphones to Drive Double-Digit Growth of Smart Connected Devices in 2014 and Beyond, According to IDC

June 17, 2014

SAN MATEO, Calif.--(BUSINESS WIRE)-- Worldwide smart connected devices (SCD) are forecast to grow 15.6% year over year in 2014, reaching close to 1.8 billion devices according to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Devices Tracker. Smartphone growth is expected to lead the charge as PC and tablet plus 2-in-1 forecasts have been lowered in light of a weak first quarter. By 2018, IDC estimates shipments will grow to 2.4 billion units.

"Apple's iOS-ification of Mac OS, and Microsoft's implementation of Modern UI throughout different form factors are clear indicators that we're living in a mobile-first world," said Jitesh Ubrani, Research Analyst, Worldwide Quarterly Tablet Tracker. "The PC will be the new accessory to mobile as smartphones become the first and primary computing device for many." IDC expects smartphone shipments to outpace total PC shipments by more than 6 to 1 in 2018.

The smartphone installed base is quickly approaching two billion units, and vendors are scrambling to find the next two billion users in new markets. As such, IDC is forecasting strong double-digit growth in the low-cost Android smartphone segment that is driving much of the growth in emerging countries such as China, India, and Brazil. Meanwhile, mature markets such as the United States and Western Europe are slowing to single-digit growth rates as the installed base swells.

"Low-cost Android smartphones will drive much of the SCD shipment growth in coming years," said Tom Mainelli, Program Vice President for IDC's Devices and Displays group. "The influx of inexpensive phones will drive the SCD average selling price bands downward, with the sub-$200 band increasing from 33% of total shipments in 2013 to greater than 43% in 2018, while devices that cost more than $500 are forecast to shrink from 33% of total device shipments to 21.1%."

Smart Connected Devices, Worldwide Share of New Shipments by Price Band, 2013 2018

Year $0 < $200 $200 < $500 $500+
2013 32.7% 34.3% 33.0%
2014 37.2% 33.6% 29.2%
2018 43.3% 35.6% 21.1%


Source: IDC Worldwide Quarterly SCD Tracker, June 17, 2014

Note: Smart Connected Devices include Desktop PC, Portable PC, Tablet, 2-in-1, and Smartphone.

In addition to the table above, an interactive graphic showing the product category shares of the worldwide smart connected device market over the 2013-2018 forecast period is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.




IDC

Tom Mainelli, 650-350-6455

tmainelli@idc.com

or

Jitesh Ubrani, 416-673-2214

jubrani@idc.com

or

Michael Shirer, 508-935-4200

press@idc.com


Source: International Data Corporation


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