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Entry-level Smartphones To Gain Widespread Popularity By 2015, Reports Juniper Research

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Entry-level Smartphones To Gain Widespread Popularity By 2015, Reports Juniper Research
January 31, 2011
By Carolyn J Dawson, TMCnet Contributor


According to a new report titled "Low Cost Handsets and Entry Level Smartphones", developed by Juniper Research, shipments of entry-level smartphones is bound to grow considerably and will exceed 185 million globally by the year 2015. Most of this growth will be driven by operators own brand devices that will in turn boost data usage on their networks. The report found that increasing competition and availability of cheaper chipsets will further reduce the pricing of low-cost smartphones, with the cost going as low as $80 in 2015 from $150 in 2010.

The report found that smartphone features usually associated with high priced phones, such as app store connectivity and Android (News - Alert) OS, will soon be offered to subscribers through low-cost models such as the Orange Boston and Vodafone’s 945 that are manufactured under OEM agreements by handset vendors like Huawei. In a release, Anthony Cox (News - Alert), analyst at Juniper Research and author of the report said, “In 2010 operators like Vodafone and Orange kick-started the low-cost smartphone market with devices in the $150 range. Pricing of smartphones will come down to $80 by 2015.”

According to the report, while first tier of local players, including ZTE (News - Alert) and Huawei, seek market gain in the US and beyond, the second tier of local players, such as India and China, are gaining importance in their local handset markets. However, the second tier of local players do not have the capability to provide sophisticated content strategies compared to veteran handset manufacturers like Nokia (News - Alert).

The report includes other findings such as the plans to launch competitively priced Android-based smartphones by Chinese and Indian handset vendors such as Micromax. Low-cost handsets will also be offering mobile Internet at a low price point of $25 due to compression and remote browsing capabilities. To reduce churn for the operator as well as develop customer stickiness to the handset brand for the vendor, content strategies will be gaining immense popularity in the mobile market. Local players in the growth markets such as India and China are now able to enter the handset market without facing any major challenges.

Carolyn John is a Contributor to TMCnet. To read more of her articles, please columnist page.

Edited by Jennifer Russell

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