The telecom market had a positive start in Q1 of 2017 with a turnover growth of 3.5%. However, market growth is slowing down if compared with the growth rates of the first quarters of the last 3 years. We are a step closer to saturation.
One of the biggest reasons why the telecom hardware market is slowing down is due to the fact that its most important product, the smartphone, is doing alike. Last year we had a 12% growth in Q1, this year it slowed down to 4.2%. This can partly be explained by the later launch of the flagship device of one of the key manufacturers in this segment.
The most remarkable grower within the telecom category, with almost a triple digit numbers, is the wearables segment! We see that 6 out of ten wearables sold in Q1/2017 are Health & Fitness Trackers. The actual and future volume and value increase of this segment is based on the consumer’s choice of style and compactness.
Let’s hope this positive vibe is not only driven by New Year resolutions.
Jürgen De Mesmaecker - Industry Manager Technology