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    Home»In-depth»Smartphones now dominate everything

    Smartphones now dominate everything

    In-depth By Sunil Gopal28 May 2015
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    smartphone-640

    The world’s cellphone manufacturers will sell 1,4bn smartphones in 2015, generating US$300bn in sales. Indeed, smartphone sales will dwarf the sale of all PCs, televisions, tablets and game consoles.

    This is a key finding in Deloitte’s TMT Predictions 2015 report, released on Thursday.

    The consulting and auditing firm says that in developed markets, seven out of 10 smartphone users upgraded their smartphones in the past 18 months.

    Although people still spend significant time watching TV or using computers, the smartphone remains their “most constant companion, the most personal of choices, the most customised and reflective of the owners, the least likely to be shared with other users, and the most frequently looked at”.

    Deloitte predicts 1,4bn smartphone sales in 2015, with more than three-quarters of those being upgrades.

    A number of factors drive people’s urge to buy newer smartphones, including improved performance — bigger screen size, better camera capabilities and new features like fingerprint sensors. Aesthetics and social factors such as peer pressure also play a role.

    Another prediction by Deloitte is that the digital divide is widening, with the new divide being the broadband speeds that different users are able to access.

    Although the gap previously referred to the “haves” and the “have-nots”, the gap between those with faster broadband speeds and those with basic broadband access is increasing significantly.

    Regulators need to take note of this development and realise that simply calling for broadband access is not enough, says Deloitte.

    In the technology space, Deloitte predicts that 2015 will see a billion “Internet of things” (IoT) devices shipped, a 60% increase from last year. IoT allows consumers to complete tasks remotely, from controlling appliances, to monitoring home security, climate control and lighting. However, the list of services available is increasing with “smart meters, smart grids, smart homes, smart cities and smart highways … just some examples”.

    In the media space, the rise of short-form video and the pervasiveness of books are some of Deloitte’s predictions. Short-form videos that last less than 20 minutes will form 3% of all watched content in 2015 and will generate $5bn in revenue. This is compared to longer videos that will generate more than $400bn in revenue, primarily from advertising and subscriptions.

    Despite predictions to the contrary, the print industry in alive and well, with over 80% of books sold worldwide still in print format. Books still dominate in markets with high digital penetration and even more so in the developing world.  — © 2015 NewsCentral Media

    Deloitte
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