Skip to main content

Huge Demand for Smartphones in Emerging Markets

According to the latest market study by International Data Corporation (IDC), smartphone shipments are expected to grow by 32.7 percent year over year in 2013, reaching 958.8 million units -- that's up from 722.5 million units in 2012.

2013 will mark the first year that smartphone shipments surpass those of feature phones, with smartphones expected to account for 52.2 percent of all mobile phone shipments worldwide.

IDC believes that this trend will continue as demand for mobile internet access spreads across both developed and emerging markets. In fact, emerging markets will account for 64.8 percent of all smartphones shipped during 2013 -- that's up from 43.1 percent in 2010.

Strong demand from end users, greater emphasis by mobile service providers, and a deep selection of devices available from vendors at multiple price points are all contributing to smartphone adoption.

In addition, user behavior has switched from simple voice telephony to digital content creation and  consumption. As such, the smartphone has become the ideal communication tool for many users.

"2013 will mark a watershed year for smartphones," said Ramon Llamas, research manager at IDC. "If you look at the number of vendors who support both feature phones and smartphones, many of them have not only successfully transitioned their product portfolios to highlight smartphones, but smartphones have become their primary value proposition going forward."



In some cases, smartphones have accounted for well over 50 percent of vendor quarterly shipment volume. Looking ahead, IDC expect the gulf between smartphones and features phones to grow even wider.

With the rise in global smartphone shipments, demand has quickly spread from developed markets to emerging markets. As a result, smartphone average selling prices (ASPs) have declined to $372 in 2013 -- that's down from $407 in 2012 and $443 in 2011.

As this trend continues, smartphone ASPs are expected to drop as low as $309 by 2017 -- with emerging market demand the main catalyst in this change. Computing at such low end-user cost has posed many challenges to handset OEMs and component suppliers.

At a time when the global smartphone market is growing at 33 percent year over year, average selling prices have plummeted, dropping -8 percent in 2012 with another -9 percent expected this year.
 
One way in which vendors have managed to keep costs down is by continuing to produce 3G smartphones alongside faster 4G smartphones. Using older radio components has proven to be an easy cost-cutting measure for handset OEMs in the smartphone space.

Moreover, 3G-enabled smartphones will account for 70.9 percent of all smartphones shipped in 2013, and 50.1 percent of smartphones shipped in 2017.

Popular posts from this blog

Digital Transformation Growth Defies Market Volatility

The forward-looking CEO's commitment to ongoing investment in Information Technology (IT) is persistent. Worldwide IT spending is forecast to total $4.4 trillion in 2022 -- that's an increase of 4 percent from 2021, according to the latest worldwide market study by Gartner, Inc.   "This year is proving to be one of the noisiest years on record for CIOs," said John-David Lovelock, vice president at Gartner . Regardless, digital transformation remains a high priority across the globe. Geopolitical disruption, inflation, currency fluctuations, and supply chain challenges are among the many market volatility factors vying for attention, yet contrary to what Gartner saw at the start of 2020, enterprise CIOs are accelerating IT investments in 2022. Digital Transformation Market Development As a result, purchasing and investing preferences will be focused on areas including data analytics, cloud computing, seamless customer experiences, and IT security. Inflation impacts on

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut