2016/06/14 Strategy Analytics: Q1 2016 Business Smartphone Flat YoY & Tablet Sales Down 9.8% YoY

Headwinds for Both BYOD and Corporate-Liable Device Shipments

Boston, MA – June 9, 2016 – Over 110 million enterprise smartphones and tablets were shipped worldwide in Q1 2016. Worldwide Business smartphone shipments for Q1 2016 fell to 92.2 million units, down 21.0% from the previous quarter and up 0.5% annually from 91.8 million in Q1 2015; while the worldwide business tablet market fell to 17.3 million unit shipments in Q1 2016, down 34.5% sequentially from 26.4 million units in Q4 2015 and down 9.8% annually from 19.1 million in Q1 2015. Weakening global smartphone and tablet demand, slowing economy, and piling-up inventory were hammering the growth of both BYOD and Corporate-liable markets in first quarter of the year.

According to Gina Luk, Senior Analyst and author of the Strategy Analytics Mobile Workforce Strategies (MWS) report, “Global Business Smartphone Quarterly Tracking Q1 2016”, “many enterprises withheld from investing in new deployments of smartphones in Q1 2016 and inventory built-up due to large volume purchases in Q4 2015. New device launches from vendors popular with enterprises, such as Apple and Microsoft, were on the horizon, meaning enterprises held off large volume purchases until official launch dates were announced”.

In the worldwide business tablet space, all regions showed year-over-year and quarter-over-quarter shipment decrease. Marked by little hardware innovation and limited vendor portfolio updates. According to Strategy Analytics Global Business Tablet Quarterly Tracking Q1 2016, the worldwide business tablet market is undergoing a downward spiral and has reached its lowest point since Q4 2013.

“Longer life cycles, increased competition from other categories such as larger smartphones/phablets, combined with the fact that end users can install the latest operating systems on their older tablets has stifled enthusiasm for these devices in both BYOD and corporate-liable environments. In addition, Q4 2015 registered a strong quarter for business tablets, hence a soft first quarter of the year is not unusual”, added Andrew Brown, Executive Director of Enterprise Research at Strategy Analytics.
Source: Strategy Analytics