Number of Chinese smartphone users surfing the Internet is increasing. (Photo : Reuters)
Demand for China's smart connected devices (SCD), which include the PCs, tablets, and even the smartphones, is expected to slow down this year. According to market intelligence firm International Data Corporation, several factors would dictate this anticipated trend.
According to this new report, combined shipments of smart connected devices would rise at a much slower pace. It might rise only by 30 million units from the previous year.
The demand for these devices reached 510 million and it is expected to only reach around 540 million this year. The report said that this can be explained by the factors present in China's SCD market.
According to Nick Miu, the the senior analyst of IDC China, this expected slowing down of the market growth can be explained by product penetration into lower tier cities, changes in sales channels, as well as the impact of smartphones and tablets on PCs.
In addition, smartphone sales can be affected when high subsidies offered by telco operators and the stiff competition among phone manufacturers end.
While it is at the present an increment market for the Chinese economy, the SCD market would soon become a replacement market, the report added.
In particular, the tablet market would face a blow to their growth because more consumers are going to be more taken with using phablets, or phones that almost look like tablets because of their screen sizes, sometimes reaching up to 6.99 inches. Phablets are also becoming cheaper, attracting consumers away from tablets into buying phablets instead.
