(Image source: Greg Sandoval/CNET)

BY ADAM FALK AND NATHAN BYRNE

ANCHOR CHRISTINA HARTMAN

There’s always a hottest, newest smartphone — and it’s usually also the most expensive. But one study predicts cheaper smartphones will take over the market in five years.

According to research firm Informa, affordable smartphones will make up the majority of the industry’s sales in 2017. The entry-level smartphone surge will reportedly come from increasing demand in emerging markets.
[VIDEO: Boost Mobile]

Expensive smartphones, like Apple’s iPhone, made up about 83 percent of the market last year. But the projections suggest that number could dip to as low as 33 percent by 2017.

A writer for CNET says the shift doesn’t look like good news for handset manufacturers who make high-end devices that bring in hefty profit margins. He writes, Many have already reduced their product lines to just a few higher quality products a year, even as they struggle to retain market share in a business increasingly dominated by Apple and Samsung Electronics.”

The study forecasts a future with a two-tiered smartphone market – “super-smartphones” and the plain ones.

“As the market develops, the supply chain will increasingly be divided between two camps – the innovators who will continue to introduce new features and high-performance components to the market place [sic] and followers who will take this innovation to the mass market in later years.”

If companies like Apple and Samsung hold top spots, the study suggests those like Nokia, LG, Motorola and more might aim for the “followers” market.
[VIDEO: Samsung Mobile]

Lower-end devices aren’t new. Even Samsung has phones available on carriers like MetroPCS. But prepaid smartphones can cost more than $150 without a plan. That’s the part the study predicts will change.

Cheap Smartphones to Take Over Mobile Industry?

by
0
Transcript
Dec 11, 2012

Cheap Smartphones to Take Over Mobile Industry?

(Image source: Greg Sandoval/CNET)

BY ADAM FALK AND NATHAN BYRNE

ANCHOR CHRISTINA HARTMAN

There’s always a hottest, newest smartphone — and it’s usually also the most expensive. But one study predicts cheaper smartphones will take over the market in five years.

According to research firm Informa, affordable smartphones will make up the majority of the industry’s sales in 2017. The entry-level smartphone surge will reportedly come from increasing demand in emerging markets.
[VIDEO: Boost Mobile]

Expensive smartphones, like Apple’s iPhone, made up about 83 percent of the market last year. But the projections suggest that number could dip to as low as 33 percent by 2017.

A writer for CNET says the shift doesn’t look like good news for handset manufacturers who make high-end devices that bring in hefty profit margins. He writes, Many have already reduced their product lines to just a few higher quality products a year, even as they struggle to retain market share in a business increasingly dominated by Apple and Samsung Electronics.”

The study forecasts a future with a two-tiered smartphone market – “super-smartphones” and the plain ones.

“As the market develops, the supply chain will increasingly be divided between two camps – the innovators who will continue to introduce new features and high-performance components to the market place [sic] and followers who will take this innovation to the mass market in later years.”

If companies like Apple and Samsung hold top spots, the study suggests those like Nokia, LG, Motorola and more might aim for the “followers” market.
[VIDEO: Samsung Mobile]

Lower-end devices aren’t new. Even Samsung has phones available on carriers like MetroPCS. But prepaid smartphones can cost more than $150 without a plan. That’s the part the study predicts will change.

View More
Comments
Newsy
www3