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IDC: Falling prices to fuel smartphone market growth

IDC: Falling prices to fuel smartphone market growth
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The steadily falling average selling prices (ASPs) of smartphones will fuel steady growth of worldwide smartphone market through the end of the year 2015, according to a new mobile phone forecast from the International Data Corporation (IDC).
The IDC Worldwide Quarterly Mobile Phone Tracker is coming amidst a forecast of smartphone market growth slowdown for the rest of the year.
According to the Forecast, smartphone shipments are expected to grow 10.4 percent in 2015 to 1.44 billion units. This is lower than IDC’s previous smartphone forecast of 11.3 percent year -over -year growth in 2015.

[blockquote right=”pull-right” cite=”IDC”]“India has captured a lot of the attention that China previously received and it’s now the market with the most potential upside. The interesting thing to watch will be the possibility of manufacturing moving from China and Vietnam over to India. We’ve begun to see this move as a means to cut costs and capitalize on financial benefits associated with localized India manufacturing. It is the local vendors like Micromax, Lava, and Intex that will feel the most pressure from international competition within its market.”[/blockquote]

Nigeria posted record 135% growth in smartphone shipments in 2014 as falling prices price threaten feature phones, according to a new report by IDC.
Android smartphones
China, according to IDC, remains the focal point of the global smartphone market in 2015, although the results haven’t been as positive as in previous years. As the largest market for smartphones – China consumed 32. 3% of all new smartphone shipments in 2014 – its importance remains great even if its growth has begun to slow. Shipments are forecast to grow just 1 .2 % year over year in 2015, which is down from 19. 7% in 2014.
China will remain the largest market for smartphone volumes throughout the forecast period. However, its share of the overall market is expected to drop to 23. 1% in 2019 as high -growth markets like India continue to expand.
“China clearly remains a very important market. However, the focus will be more on exports than consumption as domestic growth slows significantly” Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker says.
“India has captured a lot of the attention that China previously received and it’s now the market with the most potential upside. The interesting thing to watch will be the possibility of manufacturing moving from China and Vietnam over to India. We’ve begun to see this move as a means to cut costs and capitalize on financial benefits associated with localized India manufacturing. It is the local vendors like Micromax, Lava, and Intex that will feel the most pressure from international competition within its market.”
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Kayode Oladeinde Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929

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