Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    Low-Cost Phones Lead Charge as Smartphone Shipments Rise 19 Percent

    Written by

    Todd R. Weiss
    Published September 16, 2014
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Inexpensive smartphones being sold around the world in developing nations are apparently helping to push smartphone shipment growth to 1.2 billion devices, up an estimated 19 percent in 2014 over 2013, when 985 million smartphones shipped, according to the latest figures from Juniper Research.

      The new estimates were released Sept. 16 in a research report, Smartphone Markets: Trends, Shares & Forecasts 2014-2019, by analyst Nitin Bhas. “The market is expected to be driven by growth in emerging markets, due to a continued surge in sales and adoption of low-cost Economy ($75-$150) and Ultra-Economy (sub-$75) smartphones,” he wrote. Such emerging markets “are now vital to success in this sector, with the gap between the growing emerging markets and the stagnating mature markets closing.”

      One reason for the new growth in the lower end of the market is that the upper end, filled with premium phones like iPhones and others at premium prices, is becoming saturated by users who have the devices they want and need, said Bhas in an email reply to an inquiry by eWEEK. That lower end of the market didn’t exist in 2007 when the first Apple iPhones appeared.

      “The emergence of the Economy or Ultra-Economy price band, coupled with the relative stagnation of the premium bands in developed markets, means that vendors need to diversify their product ranges to include these new consumers,” wrote Bhas. “Most of these new entrants have come from the emerging markets, most notably as Xiaomi and ZTE from China and Micromax from India. These vendors, although comparatively young, now have the experience of operating in low margin environments.”

      A key growth spurt in the market is being played out right now in India, he wrote, where significant growth is expected “from both home-grown and international brands launching new products specifically tailored to the budget end of the market.”

      Interestingly, Google just introduced a line of low-cost Android One smartphones in India this week to make phones and mobile service more affordable to some 5 billion people around the world who aren’t yet smartphone users. The fully featured smartphones start at about $105 each, according to a recent eWEEK story.

      “The key markets for these budget devices in 2014 are the Far East and China and the Indian Subcontinent, with a large number of consumers who want smartphones but may be unable to pay premium prices,” wrote Bhas. “While the expectations of these consumers will probably be low in terms of smartphone capabilities, vendors would do well to offer services tailored to each market to drive habit formations and insulate against other international brands. Also, by focusing on localization, there is an opportunity for vendors to establish positive consumer experiences, and therefore increased potential for long term loyalty.”

      The shifts in the marketplace are already happening and are expected to continue into the future “as these price sensitive markets become more of a focus for growth for smartphone vendors, including tapping previously unavailable regions,” he wrote. “This will not, however, impact the ultra-premium phones (those priced $600 or over), whose buyers are likely unconcerned by price.”

      The report, which is also available in a free white paper form in exchange for registration, also estimates that Apple and Samsung will account for nearly 45 percent of the global smartphones shipped this year, while the average selling price for a smartphone will decline globally to $274 by 2019.

      A Juniper Research report in November 2013 estimated that the number of employee-owned smartphones and tablets used in the enterprise will exceed 1 billion by 2018, as the growing trend of bring your own device (BYOD) redefines business connectivity. The report, Mobile Security: BYOD, mCommerce, Consumer & Enterprise 2013-2018, found that although the trend has the potential to benefit organizations in terms of enhanced employee satisfaction and productivity, the threat from unprotected employee mobile devices is of significant importance.

      Todd R. Weiss
      Todd R. Weiss
      Todd R. Weiss is a seasoned technology journalist with over 15 years of experience covering enterprise IT. Since 2014, he has been a senior writer at eWEEK.com, specializing in mobile technology, smartphones, tablets, laptops, cloud computing, and enterprise software. Previously, he was a staff writer for Computerworld.com from 2000 to 2008, reporting on a wide range of IT topics. Throughout his career, Weiss has written extensively about innovations in mobile tech, cloud platforms, security, and enterprise software, providing insightful analysis to help IT professionals and businesses navigate the evolving technology landscape. His work has appeared in numerous leading publications, offering expert commentary and in-depth analysis on emerging trends and best practices in IT.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×