Average smartphone prices down R500
Worldwide smartphone shipments are set to rise by close to 40% in 2013, while the average selling price for devices has shown a decline of more than 12% over the past year alone.
This is according to new data published by the IDC, which shows that smartphone shipments are expected to pass one billion units in 2013 – showing 39.3% growth since 2012.
In 2013, the IDC expects the average selling price of smartphones to be US$337 – down 12.8% from US$387 in 2012 – with the trend expected to continue, hitting US$265 by 2017.
By 2017, the IDC predicts that total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate (CAGR) of 18.4% from 2013 to 2017.
“Despite a number of mature markets nearing smartphone saturation, the demand for low-cost computing in emerging markets continues to drive the smartphone market forward,” IDC said.
According to the research firm, the growth in the sector is mainly being driven by a drop in the average selling price (ASP) of smartphones, led by Android, which has allowed smartphone manufacturers to develop low-cost handsets.
Worldwide Smartphone Forecast by Region (millions of units)
| Region | 2013 Shipments |
2013 Market Share |
2017 Shipments | 2017 Market Share | CAGR |
| Asia/Pacific | 528.2 | 52.3% | 986.0 | 58.5% | 23.2% |
| Europe | 182.1 | 18.0% | 261.0 | 15.5% | 11.1% |
| North America | 151.0 | 15.0% | 189.0 | 11.2% | 7.8% |
| Latin America | 91.1 | 9.0% | 154.7 | 9.2% | 23.7% |
| Middle East and Africa | 57.6 | 5.7% | 95.0 | 5.6% | 18.5% |
| Total | 1,010.1 | 100.0% | 1,685.5 | 100.0% | 18.4% |
“The game has changed quite drastically due to the decline in smartphone ASPs,” said Ryan Reith, program director with IDC’s Worldwide Quarterly Mobile Phone Tracker.
“Just a few years back the industry was talking about the next billion people to connect, and it was assumed the majority of these people would do so by way of the feature phone. Given the trajectory of ASPs, smartphones are now a very realistic option to connect those billion users.”
Worldwide Smartphone Average Selling Price (ASP) in USD
| Region | 2013 ASP | 2017 ASP | 5 Year CAGR |
| Asia/Pacific | $262 | $215 | -8.9% |
| Europe | $419 | $259 | -9.0% |
| North America | $531 | $567 | 2.1% |
| Latin America | $288 | $246 | -5.7% |
| Middle East and Africa | $338 | $230 | -7.3% |
| Total | $337 | $265 | -7.3% |
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