I've seen you argue this before, and it still doesn't make sense. The nature of smartphone and tablet sales is built around upgrades every two years. The manufacturers nearly ensure this by abandoning software support for older phones.
The Galaxy S3v and Note 2 have set sales records for Samsung, and despite the online backlash Apple is still printing money with the iPhone 5 and iPad mini. What is this speculation based on? Even if the mobile gaming bubble bursts, it isn't the primary reason these devices are desirable.
You have an Apple ID?
So you probably already downloaded every app you need for daily use and you can transfer them without paying additional money to your new phone (nothing changed).
Everything else you download are entertainment applications like games, which you buy from time to time.
You won't start buying Angry Birds now because you have a new iPhone 5 (you could already download and play it on your old phone). You're going to download entertainment applications like in the past.
Traditional gaming market:
- Buy new console to play totally new games.
Smartphones:
- Buy new smartphone, you're still downloading from the same store, same games.
And most smartphone developers must consider at least the last two generations, because so many people have them, to get most sales out of this.
China is irrelevant? Please call CNN with this gem.
Is China relevant to the traditional video game market?
Where have they been since 1970?
Video game systems are banned there officialy.. (people sell them regardless)
If the iPhone sells good there, the 3DS is going to sell bad in the western markets or what is the logic behind this?
Any business person, including handheld makers, who think those markets are irrelevant is a really bad business person.
see anwser above.