Top Mobile Device Growth in 2016

A decade ago, the personal computer was the most common means of accessing the internet. Today, this has shifted dramatically, as smart devices like smartphones and tablets are capturing a large percentage of the world’s internet users.
In this article, the Investing News Network uses data from Cisco to examine the fastest growing devices for accessing the internet. We found that, although PCs are still witnessing steady growth, smart devices like smartphones and tablets are poised to far outstrip this growth over the coming five years. Without further ado, here’s a detailed look at the top mobile device growth of the coming year.

PCs: Platform of the past

As noted, personal computers (PC) brought internet to the masses. However, now that internet access is widely available in most developed countries, consumers are moving away from the PC to access internet data in new ways. Cisco found that global PC mobile data traffic will grow 2.8-fold from 2015 to 2020, representing a compound annual growth rate of 23 percent. All told, PC mobile data traffic will reach 950.6 Petrabytes per month by 2020. While these figures may seem large, the percent of internet users relying on PCs is actually decreasing. In 2015, 9 percent of total mobile data traffic was accessed off of a PC. By 2020, it is estimated that only 3 percent of traffic will be accounted for by a PC. So what is taking it’s place? Tablets and smartphones emerge as the clear winners.

Mobile device growth for tablets

While PCs are expected to see a compound annual growth rate of 23 percent, tablets are anticipated to see a compound annual growth rate of 50 percent. This means that, between 2015 and 2020, this device will see a whopping 7.6-fold increase in traffic. To put this in perspective, tablets were 1.7 percent of device connections in 2015. By 2020, this device will represent 3.1 percent of device connections.
However, like personal computers, tablets will actually lose ground when it comes to total mobile internet traffic. Last year, they accounted for 9.3 percent of total traffic. In 2020, they will account for only 8.5 percent of total traffic. All told, tablet mobile data traffic will reach 2.6 Exabytes per month by 2020.

Smartphones take the lead

Ultimately, smartphones are leading the way for mobile internet usage. Out of all the mobile devices investigated by Cisco, smartphones illustrate the largest increase in total growth over the next five years. Globally, smartphone mobile data traffic will grow 8.8-fold from 2015 to 2020, a compound annual growth rate of 54 percent, reaching 24.7 Exabytes per month by 2020. The average smartphone will generate 4,406 megabytes of mobile data traffic per month by 2020, up from 929 megabytes per month in 2015, a compound annual growth rate of 37 percent.
To put this in laymen’s terms, globally, smartphones will be 81 percent of total mobile data traffic by 2020, compared to 76 percent at the end of 2015. Furthermore, while smartphones accounted for 38.6 of device connections in 2015 and 76.5 of total traffic, this will jump to almost half of device connections and 80.8 percent of total global traffic 2020.

Investor outtake

So what does this mean for investors? With smartphones generating 41 times more mobile data traffic per month than a basic handset, mobile apps appear to be a strong area of investment. Therefore, mobile apps, such as those sold through the Apple App (NASDAQ:AAPL) store or Google Play (NASDAQ:GOOGL), appear to be a promising sector of investment. If you’re curious about this sector, here’s a list of the top app stocks to invest in. And, if mobile gaming is a specific area of interest, click here to learn more about investing in video games. All told, the mobile market is growing profusely, particularly when it comes to smartphones. Meanwhile, smart investors are tailoring their investment strategy to this device of the future.
Let us know in the comments if you have a favourite app company to invest in! Also, don’t forget to follow us @INN_Technology for real-time news updates.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.