At least three major global shifts are predicted to take place in the smartphone market during 2016. Smartphone financing will become the norm, while Indonesia will join India as the next big smartphone market after China. Meanwhile, smartwatches will start to cannibalize fitness bands, according to Strategy Analytics.

"Smartphone instalment plans and lease-to-own programs will go global in 2016, as OEMs take programs that first gained traction in the US to other markets," said Ken Hyers, director at Strategy Analytics. "Apple iPhone Upgrade Program and ZTE SmartPay are among early leaders in using direct financing to boost smartphone shipments or enhance customer stickiness."

Hyers continued that "operators, like Sprint, will feel the squeeze from vendor-led financing and will need to respond vigorously with their own customer loyalty and lease-to-own programs."

In 2016, Indonesia will join India as the next big smartphone market after China. "As China's growth slows due to maturity, smartphone vendors will increasingly search for fresh growth in other emerging countries," noted Neil Mawston, executive director at Strategy Analytics. "India and Indonesia together will represent 13% of all smartphone shipments worldwide next year."

India is set to overtake the US as the second-largest smartphone market by 2017, said Mawston, adding that India and Indonesia will be the fastest-growing smartphone markets among the world's ten biggest countries from 2016 to 2020.

"We also predict some smartphone and component manufacturing to shift out of China and into India and Indonesia during the coming years, for closer supply proximity to these growing pools of demand," Mawston indicated.

Smartwatch shipments worldwide are forecast to grow 57% in 2016, while fitness bands will grow just 8%, according to Strategy Analytics. "Smartwatches optimized for health and fitness, such as the Moto 360 Sport, are emerging as strong alternatives to Fitbit and other players in the fitness band category," said Cliff Raskind, director at Strategy Analytics. "Just as multi-function smartphones displaced most feature phones, multi-function smartwatches that support fitness apps, social feeds and music-to-go will eventually cannibalize mid-to-high-tier fitness bands."