According to a report by Deloitte, there will be over 1 billion smartphone upgrades in 2015, generating around $300 billion in sales for device manufacturers. This will mark the first year where smartphone upgrades for an older phone will exceed 1 billion. The smartphone industry has experienced steady growth and is estimated to grow from 1.8 billion in 2014 to 2.2 billion in 2015.
An estimated 400 million new Smartphones will be added to the market this year
It comes as no surprise that smartphones sales have gone through the roof. No longer only in the reach of the high end customers, we are seeing more and more devices targeted towards the mid and lower end markets. The growth of smartphone sales and revenues are also expected to beat the PC, television, tablet, and games console sectors combined. The growth in this market is expected to continue through 2018.
Why do consumers tend to upgrade?
Most people don’t really need an upgrade to their phone but they still go for it because there is always something better in the market. A combination of the need for the latest tech, peer pressure and sheer personal nature of the smartphone play a part in the decision.
Manufacturers also play it smart. We see a constant slew of upgrades in looks, features and aesthetics in the devices themselves. Some factors which affect the perceived value of an upgrade are bigger screens, better performance and increased durability.