Smartphone shipments to reach 1B by 2016, says report

Staff writer
telecomasia.net
The number of global smartphone shipments will reach one billion per annum in 2016, up from 302 million in 2010, according to a new report.
 
The report published by analyst firm Juniper Research also said smartphones, traditionally high-end handsets, will make-up the majority of shipments in five years’ time, as this type of device becomes available at lower price points.
 
Competition amongst vendors offering premium smartphones is intense, and so Juniper believes the best opportunity for new players is through economy models (those with an unsubsidized retail value of $150 or less).
 
 “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,” said Daniel Ashdown, author of the report.
 
Juniper predicts that open-source operating systems – predominantly Android – combined with the falling cost of key components will make this possible. However, the market for standard smartphones ($151-$399) and premium smartphones ($400 and above) will remain robust, the report said.

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