Growth to slow for China's smart devices: IDC forecasts

A new iPad is seen follownig a presentation at Apple headquarters in Cupertino, California Oct 16, 2014.[Photo/Agencies]

BEIJING - The shipment growth of China's smart connected devices (SCD), including PCs, tablets and smartphones, will slow down in 2015, according to market intelligence firm International Data Corporation (IDC).

Combined shipments in 2015 will rise at a slower pace to 540 million units from around 510 million in the previous year, IDC said.

In 2014, many factors changed China's SCD market, including product penetration into lower tier cities, changes in sales channels, as well as the impact of smartphones and tablets on PCs, said Nick Mu, senior analyst with IDC China.

This year will see a narrower growth of smartphone shipments in small Chinese cities, where high subsidies offered by telco operators and fierce competition among manufacturers will come to an end. Currently an increment market, it will be transformed into a replacement market, according to the IDC.

The tablet market will also face great challenges after years of high growth, IDC said. Phablets, a term given to smartphones with a screen size of 5.5 to 6.99 inches, with a constantly declining price, are becoming more attractive than tablets in small cities.

PCs have been seriously impacted by smartphones and tablets, the sales of which were greatly stimulated by the demand for mobile Internet, according to IDC.

IDC also forecasts smart connected devices in central and western China will keep on popularizing, thanks to the national policy support and increasing urbanization.