Market research firm IDC Korea announced on Dec. 4 that this year’s domestic supply and sales of smart connected devices, including smartphones, tablet PCs and non-tablet PCs, are estimated to reach 23.95 million units and 16.836 trillion won (US$15.135 billion), a decrease of 15.5 percent and 23.8 percent from a year earlier, respectively. “In contrast, the global supply is likely to show 17.8 percent year-on-year growth owing to the high demand for smartphones and tablet PCs in developing countries,” it added.
It mentioned a decline in smartphone supply as the main culprit of the negative growth of the domestic market. The smartphone segment used to account for 80 percent of the overall smart device market, but the domestic supply is forecast to drop by 20.5 percent to 17.54 million units and the sales by 29.2 percent to 12.345 trillion won (US$11.098 billion) this year.
“The smartphone market has already reached a saturation point, and the market downturn has been accelerated by the recent suspension of the business of mobile carriers, the Terminal Distribution Structure Improvement Act and the crisis of Pantech,” IDC Korea explained.
Non-tablet PC demand is on the decline as well, with more and more people using their smartphones and tablet PCs instead of conventional PCs. The segment, which is equivalent to 21 percent of the entire market, is predicted to record a supply of 4.91 million units and sales of 3.725 trillion won (US$3.348 billion) this year, 3.3 percent and 7.1 percent down from a year ago. Meanwhile, the tablet PC market is expected to grow 27.1 percent in supply to 1.5 million units and 15 percent in sales to 765 billion won (US$688 million).