The global smartphone market has become flat. Even though the smartphone segment is expected to increase its percentage of sales over 5 years, the total number of mobile phone shipments will remain constant at two billion. This forecast has been a favorite topic of analysts for a while now, so this prediction should come as no surprise and not many tears will be shed in the industry at large if the multi-billion profit margins of companies like Apple are slightly degraded. According to market research firm IDC, global smartphone manufacturers produced 334.9 million devices in the first quarter of 2016. This marks a paltry 0.2% increase compared to the same period last year, the smallest year-on-year growth ever recorded. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay This clearly implies that the era of crazy growth of smartphones is over. Now, Apple, which has always seemed unstoppable, saw iPhone sales decline 16% year over year in the latest quarter. It's the first time since the iPhone debuted in 2007 that this has happened. Considering the iPhone accounted for $32 billion in revenue last quarter, Apple is also feeling the new normal. There are many reasons, but the biggest one is this: Everyone who wants a smartphone has one, and the phones they're buying are so good that they don't need updates as often. Sellers now have a better sense of their position and the fight for market share will become tougher. Samsung, which according to an IDC report sold 81.9 million smartphones last quarter, more than the next two companies (Apple and Huawei) combined. In addition to stagnating sales, rising component prices could also contribute to the misery of smartphone makers, although this is more likely to impact smaller players. CCS expected component prices to rise in the second half of last year due to shortages of screens, camera modules and memory. The blame lies with larger operators who greedily gobble up available production, while recent earthquakes in Taiwan have disrupted production. “This is the first time we've seen component price increases in years,” said Marina Koytcheva, director of forecasting at CCS Insight. “Low-volume phone makers will find it nearly impossible to make a profit under these conditions without raising the prices of their products.” Samsung continues to lead the market precisely because the South Korean company offers a wide range of choices: essentially, a phone for everyone, from entry level to super-premium. This allows you to target both emerging and established markets. As is the case: The high-end Galaxy S7 and S7 Edge "sold vigorously" in March, IDC reports, while the company's J series attracted budget-conscious and first-time buyers. Apple attempted a similar strategy by introducing the smaller and relatively cheaper iPhone SE, which is basically an iPhone 6S in the body of an iPhone 5s that could have expanded its product line to appeal to those on a budget and could have helped Apple to increase profits in mature markets. although this plan did not work well. It's no surprise at all that China is the largest smartphone market in the world. However, growth is stagnant there too. According to IDC's report, year-over-year shipments in China grew 2.5 percent in 2016, a surprising decline from the 62.5 percent growth recorded in 2013. Keep in mind: This is just a.