Global smartphone sales are set to rebound after dropping to a three-year low last year, according to a survey carried out by Accenture.
More than half of respondents said that they planned to buy a new smartphone in the next year whereas only 48 per cent said the same last year.
The Asian market will drive much of the increased demand, with 74 per cent of Chinese consumers saying they intend to buy a new smartphone this year, up from 61 per cent last year.
However, sales of smart watches, fitness trackers and other connected devices is likely to remain slow, due to concerns about personal data and the relatively high price of these items compared to phones.
Nearly nine in ten of those surveyed said they were concerned about the security of online transactions, while the possibility of personal data being compromised was slowing demand for wearable devices and home-connected surveillance cameras.
Nevertheless, there is potential for acceleration in the field, as many have long-term plans to purchase smart technology. While only 8 per cent will acquire a smart thermostat this year, 42 per cent say they will buy one in the next five years. Similarly, 44 per cent would like to buy a wearable fitness device within five years, but just 12 per cent are likely to purchase one this year.
David Sovie, global managing director for Accenture’s electronics and high-tech business, said: “Market momentum for these devices will stall unless the industry overcomes these obstacles. If that happens, market demand could accelerate quickly.”