Smartphone Prices Falling As Competition Grows
Smartphone manufacturers are in serious competition for price as they all try to cut each others throats. The average price of a smartphone has been predicted to plummet from $297 (about £190) this year to $241 (about £150) by 2018. With the budget smartphone market in countries like India becoming so competitive the prices are falling and this will bring the worldwide average price down, although it is unlikely to see the likes of Apple’s iPhone come crashing down in price.
Melissa Chau is a senior research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker and she said “While premium phones aren’t going anywhere, we are seeing increasingly better specs in more affordable smartphones. Consumers no longer have to go with a top-of-the-line handset to guarantee decent hardware quality or experience. The biggest question now is how much lower can prices go?” IDC’s Ramon Llamas added “Apple’s approach with premium pricing ensures a growing portion of overall revenues despite its declining market share. Meanwhile, Android’s multi-faceted approach – with forked versions and low-cost Android One strategy – will produce mixed results, yet it allows deeper penetration into emerging markets.”