By 2016, Smartphone shipments will reach one billion per annum, growing by more than 230%.
As Smartphones – traditionally high-end handsets – are decreasing their prices, this type of device will make-up the majority of shipments in five years’ time. In 2010, the number of Smarthphone shipments was up to 302 million.
This is the conclusion coming from a new report researched by the analyst firm Juniper Research. It predicts that Smartphones – traditionally high-end handsets – will make-up the majority of shipments in the following five years, as this type of device are becoming available for lower prices.
Since the competition amongst vendors offering premium Smartphones is high, Juniper considers that entering the market through economy models – those with an unsubsidised retail value of $150 or less, are the best opportunity for new sellers – is a smart move.
“In developed markets, many consumers will want to upgrade from a feature phone to a Smartphone, but still pay a feature phone price. In emerging markets though, lower average consumer spending power and lack of operator subsidies will make a low price point essential,” explains report author, Daniel Ashdown. The study also suggests that open-source operating systems – predominantly Android – combined with the falling cost of key components will make this growth possible.
According to Juniper Research, three essential characteristics assure that the market for standard Smartphones ($151-$399) and premium Smartphones ($400 and above) will remain robust. Firstly, new technologies are arriving on these devices – including NFC, 3D and Biometrics; secondly, features of other devices continue to be integrated into Smartphones, including gamepads.
The report gives substantial primary research on Smartphone plans and handset subsidies, the impact on subscriber retention costs for operators, routes to market, technology trends and selected vendor profiles. It also examines Smartphone hardware specifications and analysis of recent trends and developments. Further information on this report ‘Smartphone Evolution Strategies: Premium, Standard and Economy Markets 2011-2016′ can be found at www.juniperresearch.com
