Skip to main content

Tablet and Smartphone Price Declines Drive Adoption

Global shipments of smart connected devices (PCs, tablets, and smartphones) are expected to surpass 1.7 billion units by 2014, with roughly 1 billion units delivered to emerging markets -- according to the latest market study by International Data Corporation (IDC).

Within the emerging markets, the BRIC countries -- China, India, Brazil, and Russia -- are expected to generate shipments of 662 million units with a shipment value of more than $206 billion.

More than 650 million units are forecast to be shipped to developed markets, with the United States, UK, and Japan capturing more than 400 million units with a shipment value of $204 billion.

With the BRIC countries expected to surpass the total shipments to developed markets by 2014, it is clear that demand for smart connected devices is quickly shifting from developed to emerging markets.

The emerging markets are expected to grow at a compound annual growth rate (CAGR) of 17 percent over the 2012-2017 forecast period, compared to the 7 percent CAGR expected in developed markets.


In terms of product categories, the smart connected device market will be largely driven by the growing demand for smartphones and tablets in both emerging and developed markets. Of the 1.7 billion units forecast to be shipped in 2014, more than 1.4 billion units are expected to be smartphones and tablets, representing more than $500 billion in value.

PCs, on the other hand, will be a comparatively small market with just over 300 million units shipped and a shipment value of less than $200 billion.

"It is evident that smartphones and tablets have successfully established a strong presence as the second screen, owing to the transformation in usage patterns, device affordability, and, most of all, the comfort of a mobile and digital lifestyle," said Megha Saini, research analyst at IDC.

With the rise in global smartphone and tablet shipments, the average selling price (ASP) of these mobile computing devices is steadily decreasing. Tablet ASPs plummeted -19 percent year over year in 2012 to $426, that's down from $525 in 2011.

Smartphone ASPs fell -8.2 percent year over year to $407 in 2012, down from $443 in 2011. This pattern of decreasing price points is most prominent in emerging countries where IDC expects sub-$300 smartphones and sub-$350 tablets to drive huge shipments in 2014 and beyond.

In developed markets, smartphones and tablets will continue to generate higher ASPs of $490 and $370, respectively, in 2014.

"Smartphone and tablet prices are now less prohibitive to first-time buyers in emerging markets," said Bob O'Donnell, vice resident at IDC.

Another factor fueling the growth of smart connected devices in emerging markets is the upsurge in the use of different mobile applications, such as mobile messaging, gaming, social networking, and social commerce, including mobile check-in services.

Growing interest from governments, especially in education projects across countries like India, Thailand, Turkey, and the UAE, has also boosted the prospects of low-cost tablets for students in these regions.

Indeed, the proliferation of cheaper, yet more capable devices, along with the deployment of 3G/4G services and changing usage patterns have been pivotal in driving the overall growth of smart connected devices in emerging markets.

Popular posts from this blog

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c