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High shipment growth expected for sub-$200 smartphones

Posted: 12 Aug 2013 ?? ?Print Version ?Bookmark and Share

Keywords:smartphone? OEM?

According to the latest forecast from ABI Research, low cost smartphones with a wholesale ASP below $200, will post shipments from 238 million in 2013 to 758 million by 2018, driven by the low penetration of smartphones and large subscriber bases found in BRIC countries. The devices are increasingly appearing in OEM and operator portfolios in both emerging and developed markets.

"Despite the low cost moniker, research has shown that the feature gap between low- and high-end smartphones is decreasing, making low cost smartphones a 'good enough' solution for price sensitive consumers in all markets," said senior analyst Michael Morgan, ABI Research.

Reference design solutions from Qualcomm and MediaTek are permitting regional and Chinese OEMs to deliver dual and quad core smartphone solutions at or below $200. Furthermore, white label and regional tier II smartphone OEMs are increasingly squeezing device margins to win on price and capture market share from tier I smartphone offerings. Low cost OEMs, such as Alcatel, CoolPad, Huawei and ZTE are leveraging their increased market share to build brand recognition and move up market, putting pressure on the tier I OEMs to respond.

"We are increasingly seeing low cost smartphones appear as a solution for prepaid operators in developed markets," noted senior practice director Jeff Orr, ABI Research. "By 2018, ABI Research believes low cost smartphones will account for 44 per cent of all smartphone shipments as the market looks to capture the next billion smartphone users."

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