In five years time, high-end smartphones will make up the majority of handsets shipped as prices begin to lower. The high-end smartphone market is already intensely competitive but there are opportunities for vendors willing to sell cheaper models, which means those with an unsubsidised retail value of $150 or less.
“In developed markets, many consumers will want to upgrade from a feature phone to a smartphone, but still pay a feature phone price,” said report author Daniel Ashdown from Juniper Research. “In emerging markets though, lower average consumer spending power and lack of operator subsidies will make a low price point essential.” Open-source operating systems, together with the lowering costs of components, will make this possible.
