SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




ABI Research: Demand for Smart Phones Pushes Prices Below $200

TMCnews Featured Article


October 30, 2009

ABI Research: Demand for Smart Phones Pushes Prices Below $200

By Rajani Baburajan, TMCnet Contributor


According to a new study from ABI Research, the price of smart phones is falling due to an increase in shipment volume.
 
ABI Research (News - Alert) said that while in 2007 only 18 percent of smart phones cost under $200 that percentage has already grown to 27 percent this year. With the popularity of smart phones increasing day by day, 45 percent of smart phones will be priced below $200 by the year 2014.

 
According to ABI Research’s Smartphone and OS Markets study, the greatest increase in smartphone shipment volumes over the next five years will be found in the $100 to $200 price range. Researchers said there has been rapid change in consumers’ attitude about smart phones. They have now gained better understanding of the value that the devices deliver.
 
“Nearly all consumers used to choose handsets based on the physical characteristics of the hardware, not the software inside,” Kevin Burden, mobile devices practice director at ABI Research, said in a statement. “The iPhone changed that: more users are now shopping for their handset based on the operating system and software, which is something once thought to be very unlikely.”
 
Accordingly, smart phone vendors and mobile operators have changed their sales and marketing strategies. The result – more and more smart phones and conventional phones are priced in similar ranges.
 
The marketing strategies are devised targeting both groups of customers: those who want a basic replacement phone, and those who care about what the OS can do for them. In some markets, these strategies are further complicated by the heavy subsidies that mobile operators may offer, ABI Research said.
 
A general trend noticed by ABI Research in these strategies is that high-end concept phones intended as prestige items or to demonstrate a manufacturer’s design and innovation prowess are never subsidized. However, most manufacturers want to offer a mix of smart phones such as the high-priced, high-margin models and also the moderately priced smart phones that can generate high volumes of sales.
 
“Prices will hold at a certain point,” Burden said. “We may never see a $30 smart phone. But over time, smart phones will take a substantial part of the mainstream handset market.”
“Smartphone and OS Markets” is part of ABI Research’s “Mobile Devices Research Service,” which analyzes the regional markets for smart phones, the outlook for the competing high-level operating platforms, and how the smart phone segment will further segment within itself.
 
Earlier this year, TMCnet reported on about another study on smart phones conducted by AdMob, a provider of mobile advertising platform. The study found that the smart phone market share all over the world increased to 33 percent in February 09 from 26 percent in September 2008.
 
The study titled, “AdMob Mobile Metrics Report February 2009,” rated iPhone (News - Alert) as the most popular phone with a 33 percent share, followed by N70 at 7.1 percent and the BlackBerry 8300 at 4.2 percent.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Amy Tierney







Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2024 Technology Marketing Corporation. All rights reserved | Privacy Policy