Posted On June 4, 2013 By In Featured, Tech News With 1080 Views

IDC: Smartphones Expected to Grow 32.7% in 2013 Fueled By Declining Prices and Strong Emerging Market Demand

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IDC – Worldwide Quarterly Mobile Phone Tracker predicts smartphone shipments to grow 32.7% year over year in 2013 reaching 958.8 million units, up from 722.5 million units last year.

The company also expects smartphone shipments to surpass those of feature phones, with smartphones expected to account for 52.2% of all mobile phone shipments worldwide in 2013.

According to the report:

This trend will continue for years to come as demand for mobile data and handheld computing spreads across both developed and emerging markets. Emerging markets will account for 64.8% of all smartphones shipped during 2013, which is up from 43.1% in 2010.

Driving smartphones forward has been a perfect combination of strong demand from end users, greater emphasis by both carriers and vendors, and a deep selection of devices available at multiple price points. In addition, user behavior has switched from simple voice telephony to data consumption and creation, and the smartphone has become the ideal tool for many users.

“2013 will mark a watershed year for smartphones,” said Ramon Llamas, Research Manager for IDC’s Mobile Phones program. “If you look at the number of vendors who support both feature phones and smartphones, many of them have not only successfully transitioned their product portfolios to highlight smartphones, but smartphones have become their primary value proposition going forward. In some cases, smartphones have accounted for well over 50% of their quarterly shipment volume. Looking ahead, we expect the gulf between smartphones and features phones to grow ever wider.”

The report also suggests that due to increasing demand in developing and emerging markets, the average selling price (ASP) of have declined to $372 in 2013, down from $407 in 2012 and $443 in 2011. In addition, this trend is expected to continue with ASPs falling to $309 by 2017.

“At a time when the global smartphone market is growing at 33% year over year, average selling prices have plummeted, dropping -8% in 2012 with another -9% expected this year,” said Ryan Reith, Program Manager for IDC’s Mobility Trackers. “Smartphones have become increasingly common in emerging markets and it is often the first affordable means of computing for these markets. These are markets where average personal income is far less than in developed markets, and therefore vendors have been forced to create smartphone computing experiences for the low end of the market.”

Worldwide Smartphone Shipments by Market Maturity: Year-Over-Year Growth, Worldwide Share, and Average Selling Price (ASP), 2013 and 2017

Year-Over-Year Growth by Market Type 2013* 2017* 2013-2017
CAGR
Emerging 45.4% 12.5% 15.7%
Developed 14.3% 4.6% 8.3%
Total 32.7% 10.1% 13.3%
Worldwide Share by Market Type 2013* 2017*
Emerging 64.8% 70.6%
Developed 35.2% 29.4%
Total 100.0% 100.0%
ASP by Market Type 2013* 2017* 2013-2017
CAGR
Emerging $307 $259 -4.2%
Developed $491 $430 -3.3%
Total $372 $309 -4.5%
Source: IDC Worldwide Smartphone Tracker, May 29, 2013.
* Forecast Data

Table Notes:

  • Developed Markets include: USA, Canada, Western Europe, Japan, Australia, and New Zealand.
  • Prices reflect cost of a smartphone to the end user without a subsidy.

IDC

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Storm is a technology enthusiast, who resides in the UK. He enjoys reading and writing about technology.

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