Research firm International Data Corporation’s (IDC) latest mobile phone forecast from the Worldwide Quarterly Mobile Phone Tracker says worldwide smartphone shipments are expected to surpass a billion units in 2013, a 39.3% growth over 2012. This was being driven by the demand for low-cost computing in emerging markets. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate (CAGR) of 18.4% from 2013 to 2017.
Average selling prices ($)
The biggest driver for the market, according to the research firm is the steady decline in average selling prices (ASPs), especially those on the Android platform. Many of these handset vendors have focused on low-cost devices as a way to build brand awareness. In 2013, IDC expects smartphone ASPs to be $337, down -12.8% from $387 in 2012. By 2017, this would have fallen to $265.
“The game has changed quite drastically due to the decline in smartphone ASPs,” said?Ryan Reith, Program Director with IDC’s?Worldwide Quarterly Mobile Phone Tracker. “Just a few years back the industry was talking about the next billion people to connect, and it was assumed the majority of these people would do so by way of the feature phone. Given the trajectory of ASPs, smartphones are now a very realistic option to connect those billion users.”
From a volume perspective, emerging markets including Asia/Pacific, Latin America, and Middle East and Africa (MEA) will all post market-beating growth rates from 2013 to 2017, the report said. Asia/Pacific will also experience some market share growth from 2013 to 2017. Developed markets, by contrast, will see market share erosion, but will nonetheless see volume increases during the same time period. All combined, the worldwide smartphone market is poised for certain growth.
