Smartphone demand continues to fall; consumers less interested in “glitzy gadgets”

A maturing smartphone market is nothing new , after all the market couldn’t continue its blistering pace of growth that we saw 3-5 years ago. The number of options for cheaper alternatives in the smartphone space has often been cited as a concern for those manufacturers trying to push flagship models.

Demand for smartphones and tablets continue to be sluggish according to a new Accenture survey. Accenture polled 28,000 consumers across 28 countries asking what consumer technology they planned to purchase in 2016. Overall, 48% said that they planned to purchase a new smartphone, although this number is six percentage points down on last year. Those looking to buy a tablet this year has fallen from 38% to 29%.



The survey results also suggest that people aren’t warming to IoT (Internet of Things) products including smartwatches either. Only 13% plan to buy a smartwatch in the next year, up by just one percentage point over last year. Factors that are said to have stifled demand of wearables include concerns over battery-life, ease-of-use, and design expectations.

“The slowdown in the consumer technology market is irrefutable, serious and global. The market is not about the glitzy gadgets anymore – rather, it’s about providing secure, innovative and practical digital services and more open collaboration. As device demand tapers off, the industry needs to make a sharp turn toward providing innovative, value-added services that consumers are able to use with confidence”, said Sami Luukkonen, global managing director for Accenture’s Electronics and High Tech group.

Where do you stand in this view – do you plan to buy a new smartphone in 2016 or is your current phone good enough? If you do plan to buy a new phone, are you considering a flagship model or a smartphone that offers better value for money overall? We’d love to hear your thoughts below.

Via Accenture.