According to Ovum, global shipment of smartphones will reach 1.7 billion in 2017, with emerging markets witnessing strong growth.
In its report titled, “Smartphone in Emerging Markets: Shifting Landscape,” Ovum reports that 450 million smartphones were sold in 2011, out of which about 160 million were sold in emerging markets.
Of this, China accounted for around 66 per cent. The research firm estimates that smartphone shipments could constitute nearly 57 per cent of the total devices sold in emerging markets by 2017.
As per Ovum, China is at the center of the smartphone development and adoption in emerging markets. The country’s ecosystem is increasingly geared towards the production of feature-rich and affordable devices. According to Ovum, affordable smartphones will have a major impact on consumer choice in emerging markets.
The research firm further says that though smartphone prices have declined, affordability continues to be a major concern in most emerging markets.
In its report, Ovum observes that operator subsidies for smartphones are uncommon in emerging markets and this has hampered smartphone adoption. Major chipset and platform vendors like Mediatek and Qualcomm are having a major impact on both availability and affordability of smartphones by offering reference designs to their partners and reducing entry-barriers.
As per the report, besides China, other emerging markets in which the smartphone segment is expected to grow substantially are India and Indonesia, followed by Brazil and Russia. Further, the growth of smartphones in emerging markets will see a corresponding growth in online services like cloud, storage, and purchasing based on mobile money transactions. OEMs and equipment vendors will also increase their presence in online services.
Ovum concludes that it will not be easy for mobile operators to gain a share in the low-cost smartphone segment in emerging markets through white-labeled devices.
