Average Smartphone Price under $100 by 2020, Gartner Predicts

by Istvan Fekete on January 21, 2015

Gartner has looked into its crystal ball, and predicts changes in network infrastructure, smartphone pricing, rapid mobile development, and end-user services. The market research company says IT leaders should plan to make Wi-Fi a strategic initiative, deploying it with at least 802.11n technology and evaluating it for network device connectivity, including telephony (via ITWorld Canada).

Removing cables has become a top priority for enterprise: By 2018, 40% of enterprises will specify Wi-Fi as the default connection for desktops, desk phones, projectors, and conference rooms.

Also, more than half of users will use a mobile device as their primary tool for online activities, by 2018, predicts Gartner. Of course, the smartphone will be the first device carried by users, followed by a tablet, which will be used for longer sessions. Users will boot up a PC only when they need to solve a more complex task, and as voice, gesture, and other modalities grow in popularity with consumers, and content consumption tasks become more frequent compared to content creation tasks, users will tend to move further away from the PC.

The good news is that by 2020, 75% of smartphone buyers will pay less than $100 for a device. Samsung is already riding that trend by launching the first Tizen-powered smartphone in India for $92. According to Gartner, by 2018, 78% of global smartphone sales will come from developing economies as feature phone users transition to utility and basic smartphones, helped by the price drop.

By 2018, Gartner expects the ASP for a basic and a utility phone to be $78 and $25, respectively. Some low-cost smartphones are expected to reach approximately $35 unsubsidized by year-end 2014 (compared with the $50 lowest entry-level smartphones seen in 2013). This is having an effect on the competitive landscape of smartphone vendors, as Chinese brands rapidly grow share, putting pressure on the Tier 1 smartphone vendors.

This seems to contrast the premium smartphone category – where Apple is competing with Samsung and other high-end smartphone OEMs – which has apparently lost steam having reached saturation levels because demand is mainly driven by replacement users and is showing signs of slowing down.

Did you like this post? TheTelecomBlog.com publishes daily news, editorial, thoughts, and controversial opinion – you can subscribe by: RSS (click here), or email (click here).

Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

Comments on this entry are closed.

Previous post:

Next post: