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ABI Research Finds 27% of Smartphones Cost Under $200 in 2009

October 29, 2009 10:19 AM | Interesting | Smartphone | Comments (0)


Smartphone prices are falling as shipment volumes increase, and a new study from ABI Research finds that while in 2007 only 18% of smartphones on offer cost under $200 retail, that percentage has already grown to 27% this year. By 2014, say the firm’s forecasts, 45% of the smartphones shipped that year will be priced below $200.

These numbers highlight a rapid change in many consumers’ attitudes about smartphones, and a corresponding shift in vendors’ and mobile operators’ sales and marketing strategies.

The result: more and more smartphones and conventional phones are priced in similar ranges. Handset makers’ and carriers’ marketing strategies must accommodate both groups of consumers: those who want a basic replacement phone, and those who care about what the OS can do for them. In some markets, these strategies are further complicated by the heavy subsidies that mobile operators may offer.
 

Some smartphones are never subsidized: the high-end concept phones intended as prestige items or to demonstrate a manufacturer’s design and innovation prowess. But increasingly, manufacturers want to offer a mix: some high-priced, high-margin models, but also a generous helping of moderately-priced smartphones that can generate high volumes of sales. According to ABI Research, by far the greatest increase in smartphone shipment volumes over the next five years will be found in the $100-200 price range.

ABI Research’s new “Smartphone and OS Markets” analyzes the regional markets for smartphones, the outlook for the competing high-level operating platforms, and how the smartphone segment will further segment within itself.  It is a component of the Mobile Devices Research Service.



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