Feature Rich 3G SmartPhone pricing is one of the most important parameters for the overall development of the Mobile Data eco-system in the context of Asian Markets ex-Japan. The Smartphone market is price driven and aggressive price cuts have seen increased adoption.
Expect smartphone volume in the US$150-300 range to increase, mainly driven by demand from low-end feature phone replacement. This is due to,
- repeat customers desiring more sophisticated solutions as they move up the learning curve
- stable component prices, albeit with more advanced specs, incentivising consumers to upgrade their devices
- increasing demand for data-driven services that operate better on higher-end devices and
- a rising 3G penetration rate thanks to broadening 3G network coverage
Despite severe competition among handset vendors, consumers can look for more specification upgrades within the current price range.
Operators and 3G SmartPhones in China
Operators’ procurement strategies to boost 3G penetration have been the key drivers behind strong smartphone volume growth, thereby driving up low-priced smartphones without subsidies to replace feature phones. China smartphone shipments are expected to reach 309mn units in 2013 (33% penetration), up from 208mn units in 2012. segment. Further, expect volume in the high-end segment priced over US $600 to increase, given rising demand from consumers willing to pay a premium for a better user experience and brand awareness.
No significant sales of 4G Mobile SmartPhones is expected in 2013 either in India or China, the two largest markets which are still deploying and stabilizing their networks.