VR and the Internet of Things will drive future growth of smartphones

On February 26, 2016, research firm Kantar Worldpanel ComTech (hereinafter referred to as "Kantar") recently released a report stating that the global smartphone market has become saturated and will not recover unless more innovations and better products emerge.

Market research firm Bidness Etc believes that there is no need to worry about the smartphone market becoming sluggish, as there will always be some innovative companies and new products emerging. For example, Apple and the upcoming iPhone 7, virtual reality (VR) and the Internet of Things (IoT) will all drive continued innovation in the market.

Kantar's report analyzes the future prospects of the smartphone industry. Kantar analyst Carolina Milanesi said in the report that in the past 10 years, the global smartphone market has achieved unprecedented development. However, the lack of new opportunities and new technologies has hindered the development of the smartphone industry. Moreover, this trend will continue unless smartphone manufacturers can make more innovations and make better products.

Kantar said in the report that in some large economies, such as the United States and Europe, the penetration rate of smartphones has reached 91%, while the penetration rate of mobile phones in Chinese cities has reached 97%, which means that almost everyone who can afford to buy and use a smartphone already has one.

The report also specifically pointed out that 65% of Americans, 74% of Europeans and 72% of Chinese urban residents already own smartphones. Milanesi believes that only if mobile phone manufacturers continue to innovate and launch new functions can the smartphone market be revitalized.

Bidness Etc believes that smartphones have indeed lost their growth momentum, but related accessories may become the savior. Small accessories that come with smartphones can use the computing power of smartphones to make our lives better. In addition, the emergence of the Internet of Things is also changing the way users use smartphones.

In addition, many technologies of smartphone manufacturers such as Apple and Samsung are in the leading position in the industry. Both companies have the ability to promote further innovation in the market, and competition is one of the main driving forces of innovation. For example, Samsung's early launch of smart watches prompted the birth of Apple Watch. Today, Apple dominates the smart watch market.

Likewise, the upcoming iPhone 7 will drive innovation in the industry. The iPhone 7 will remove the 3.5mm headphone jack (replacing it with wireless headphones), and accessory manufacturers, headphone manufacturers, and audio experts will all capture opportunities. This is the innovation we need.

In addition, VR, dual-lens cameras and other novel technologies will also drive competition in the market. Among them, VR will be an important feature to promote the growth of future smartphones. Samsung's latest generation of smartphones, the Galaxy S7 and S7 Edge, have already highlighted the company's emphasis on VR.

There are reports that Apple will also launch its own VR helmet. We believe that Apple has sufficient resources and capabilities to develop its own VR/AR (augmented reality) products. In this regard, Samsung has cooperated with Facebook's Oculus, and it is not clear whether Apple will seek external partners.

But one thing is certain, Apple's entry into the VR market will once again trigger a "domino" effect, further promoting market innovation. In the future, we will also see that smartphones will become smaller in size, while VR, wireless headphones and other accessories will complement mobile phones.

Therefore, there is no need to worry that the smartphone market will become sluggish from now on. There will always be some innovative companies and new products emerging.