The smartphone market will see a huge shift over the next five years, moving from predominantly premium devices aimed at advanced users towards cheaper, mass-market devices. According to the latest research from Informa Telecoms & Media, 81% of all smartphones shipped in 2011 were sold at a wholesale price above US$300; however, this proportion is expected to decline to below 50% in 2016.
“As economies of scale build, smartphones will progressively migrate to lower price points. Devices priced between US$200-300 will particularly be attractive to operators because they enable the democratization of mobile Internet while being very easy to subsidize. This segment will be the fastest growing part of the smartphone market within the next five years,” comments Malik Saadi, principal analyst at Informa Telecoms & Media.