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February 25, 2013

Global mobile device shipments to reach 2.6 billion units by 2016: report

Tablets are expected to grow at a compound annual growth rate (CAGR) of 35%.

By CBR Staff Writer

Global shipments of mobile devices including notebook PCs, tablet PCs, smartphones and phones are expected to reach 2.6 billion units by 2016, according to a new report.

Teh report by Canalys projects that tablets are expected to grow at a compound annual growth rate (CAGR) of 35%, while smartphones would rise at a CAGR of 18% through 2016.

During 2013, smartphones and tablets are anticipated to surpass feature phones and notebook PCs, which will decline at a CAGR of 6%.

According to the report, smart phone shipments in 2016 will double from 695 million in 2012.

Android shipments rose 71% in 2013, but are expected to decline to 66% in 2016.

Canalys VP and principal analyst, Chris Jones, said that just three years ago BlackBerry had more than 20% of the global smart phone market.

"While Canalys does not expect BlackBerry to return to that high in the coming years, it does have an opportunity to win back some of the lost customers, especially those that miss the BlackBerry keyboard. "However, for it to achieve this, the new operating system must filter down through its portfolio in the next year."

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By 2016, tablet PC shipments are forecast to reach 384 million units, which will be dominated by 7-inch screens in 2013, capturing more than half of the tablet market.

Apple is expected to maintain the lead over the next five years, even though its market share will drop to under 40%, In 2012 Apple held 57% of the market..

Canalys senior analyst, Tim Coulling said android tablets will continue to proliferate, as both phone and traditional PC vendors seek entry into the market and help drive prices down further.

"Microsoft still has growth opportunities, as consumers become more accepting of Windows 8 and its touch-screen experience, but price points will be critical to its success," Coulling said.

The research firm revealed that Microsoft’s launch of Windows 8 will help Windows phone sales in the future.

"The launch of Windows 8 will help Windows Phone in the coming years: consumer familiarity with the Live Tiles UI will rise; the cost of Windows 8 PCs will fall; and enterprise adoption of Windows 8 will increase," said Canalys principal analyst, Pete Cunningham.

"Nokia has its sights set on delivering devices to price-conscious consumers, but also needs to maintain momentum at the high end. Microsoft itself needs support and a steady stream of Windows Phone smart phones from more handset vendors to succeed."

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