Low-Cost Mobile Phones and High End Smartphones the Way Ahead
Low-Cost Mobile Phones and High End Smartphones the Way Ahead
12th August, 2009
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Europe : A trend is developing with regard to the way in which mobile device manufacturers need to evaluate future consumer demands. A new report from Junipter Research forecasts a greater divide for low cost handsets in under-developed countries and for high cost top of the range smartphones in developed countries. The mid-range mobile handset is forecast to be further squeezed.
In fact, cheaper mobile phones and high cost smartphones will account for nearly 80% of all new mobile phone sales by year two thousand and fourteen. Above shows the forecast for Low-Cost handset shipments.
Mobile phone manufacturers and operators are planning their strategies accordingly. There will be a large increase in low cost mobile phones from users on low income and also a sharp rise in “all singing all dancing” smartphone sales from well-off users in established marketplaces.
Mobile phone manufacturers such as Blackberry, Apple and Nokia are forecast to gain additional sales via the switch in trends but companies who focus on middle of the road mobile phones such as Motorola and Sony Ericsson are considering a change in strategy.
According to Low-cost handsets report author Andrew Kitson: “Low-cost handset shipments will number more than 700 million in 2014, up by 31% from levels seen in 2008, albeit down slightly from a peak of 716 million in 2012 as some users begin to upgrade to costlier devices. At the same time, smartphone shipment volumes will grow continuously across the forecast period, reaching almost 360 million by the end of the period. We therefore expect that mid-range device sales volumes will fall by more than 41% over the period”.
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