Affordable Phones To Make Up 73% Of Global Shipments This Year
Affordable handsets (under US$400) are forecast to hit up to 73% of global smartphone shipments in 2020, as consumers grapple with the economic impact of COVID19.
According to latest IDC numbers economic uncertainty has enhanced downward pressure on global smartphone prices, with the worldwide smartphone market value forecast to drop 7.9% to US$422.4 billion this year.
The figure follows US$458.5 billion in 2019, and comes as more consumers focus on essential spending and turn to affordable handsets.
The low-to-mid niche of the smartphone market (US$100 – US$400) has dominated worldwide smartphone shipments, notching 60% of the market during H2Y20.
The segment is forecast to further grow in the short-term to 63% by 2021.
The news comes as more phone makers increase their ‘affordable’ segment, including Apple’s new iPhone SE and Samsung’s Galaxy A Series.
“However, in the long term, IDC expects the fastest growth will be in the US$400-600 price band as 5G sales grow and the average selling price (ASP) for 5G phones drops to US$465 in 2024,” states Nabila Popal, research director with IDC’s Worldwide Mobile Device Trackers.
The mid-to-high end smartphone segment (US$400 – US$600) lift its market share by around 4pp to 11.6% in Q2Y20.
IDC analysts claim downwards pricing pressure has encouraged vendors to present more attractive deals, in addition to bundling offers to enhance value proposition.