Smartphones have become increasingly popular over the last few years, and according to a recent report by IDC, shipments of smartphones are expected to be over 1 Billion for 2013.
Sales of smartphones have increase around 39.3 percent since 2012, and shipments of smartphones are expected to increase to 1.7 billion units per year by 2017.
Emerging markets is where manufacturers are expecting to see increased smartphone sales over the next few year, with prices of the handsets coming down, the devices are replacing the previously affordable feature phones.
The game has changed quite drastically due to the decline in smartphone ASPs,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Just a few years back the industry was talking about the next billion people to connect, and it was assumed the majority of these people would do so by way of the feature phone. Given the trajectory of ASPs, smartphones are now a very realistic option to connect those billion users.”
“The key driver behind smartphone volumes in the years ahead is the expected decrease in prices,” said Ramon Llamas, Research Manager with IDC’s Mobile Phone team. “Particularly within emerging markets, where price sensitivity and elasticity are so important, prices will come down for smartphones to move beyond the urban elite and into the hands of mass market users. Every vendor is closely eyeing how far down they can price their devices while still realizing a profit and offering a robust smartphone experience.”
A number of manufacturers are concentrating on delivering fully featured smartphones to consumers for a much lower price, like the new Motorola Moto G, which Google describes as a fully featured device with a budget price.