The maturing of the smartphone industry is cause for celebration

WHEN APPLE cut its revenue estimate for the last quarter of 2018 because of unexpectedly slow sales of iPhones, markets convulsed. The company’s share price, which had been sliding for months, fell by a further 10% on January 3rd, the day after the news came out. Apple’s suppliers’ shares were also hit. This week Samsung, the world’s largest maker of smartphones by volume, which also sells components to other smartphone-makers, said its sales were weaker than expected for the quarter, too.

Analysts reckon that the number of smartphones sold in 2018 will be slightly lower than in 2017, the industry’s first ever annual decline. All this is terrible news for investors who had banked on continued growth (see article). But step back and look at the bigger picture. That smartphone sales have peaked, and seem to be levelling off at around 1.4bn units a year, is good news for humanity.