Come Q3 and Android phone makers across the world are beating the same drum that Apple isn't. The likes of Samsung, HTC and now Xiaomi are painting bleaker pictures of future smartphone sales across the world, especially in China where sales have stagnated.
Falling sales and diminishing profits seem to be standard highlights of quarterly financial results.
HTC, on the up for four straight quarters, has now seen losses mount to the tune of $170 million, amidst similar woes faced by the industry as a whole. Even though many would show utter surprise at the turnaround, we are sure a few would find the chain of events too obvious.
Over the past few years, phone makers across the world, principally Samsung, have been churning out dozens of smartphones within short spans to ensure astronomical revenues. The trend is such that newer smartphones hardly feature any defining or revolutionary upgrade over their predecessors, forcing buyers to question the point of spending so much money on basically a similar device like the one they already own.
A noted exception to this is Apple, who brings out just one or two iPhones every year featuring upgraded operating systems, internal features and overall design changes that ensure customers get their returns on investment.
The trend is not limited to smartphones, though. Global shipments of PCs this year will fall by 4.5 per cent, surpassed by that of tablets which will drop by an astronomical 5.9 per cent compared to 2014 figures.
Yet another reason behind the slump in smartphone sales is the mushrooming of device contracts offered by network providers across the globe. New devices are now available on contracts with lesser service fees which negate the need for buying new phones. Such contracts have now put the fortunes of mobile phone retailers in peril. In the UK, Phones4u shut down its businesses while Carphone Warehouse is now offering its own contracts to stay viable in the long run.
With overall smartphone sales growing by a meagre 3.3 per cent compared to 2014 figures, phone makers across the world will have to devise new technologies and features to ensure there will be enough incentive for customers to buy newer models that truly represent significant upgrades over their predecessors.