Exponential Growth in Smartphone Market
Trends and data continue to show the exponential growth expected in the ownership of smartphones, and are often replacing the need for personal computers, particularly in markets where personal computers are less common. New research from iSuppli, smartphone sales will top a billion units a year by 2015 as the smartphone’s share of phone shipments rockets from 15.8% in 2009, to 32.5% this year to 54.4% in 2015. According to iSuppli, sales of low-end smartphones are expected to rise at a compound annual growth rate of 115.4 percent from 2010 through 2015.
These low-end smartphones are nearly all destined for places such as China, India, South Asia and Africa – the places where personal computers as we know them are still scarce. In his article, Hanlon raises the point that as smartphones reach the hands of the less privileged, so does knowledge and information.
This growth continues to make the manufacturing of low-end smartphones very attractive and lucrative. “With their affordable prices, low-end smart phones are attractive to first-time users and to consumers in emerging economies where subscriber levels are rising at the fastest rates of all regions of the world,” said Francis Sideco, senior principal analyst, wireless communications for IHS. “Low-end smart phones often are sold with inexpensive tiered data plans that target consumers who do not yet need full-featured services. This further reduces these phones’ total cost of ownership, making them attractive to vast numbers of entry-level consumers.”
Source: Worldwide Smartphone Shipment Forecast
Image courtesy of IHS iSuppli August 2011.