Half of all smartphones to be priced below $200 in 2014
Due to the increase in smartphone shipment volume, 45 percent of the smartphones shipped in 2014 will be priced below $200, according to research firm ABI Research. The research firm said that the percentage of the smartphones being offered at or less than $200 retail will reach 27 percent this year, up from 18 percent in 2007.
After the emergence of Apple’s iPhone, consumers’ buying pattern of smartphones has changed, according to ABI Research. “Nearly all consumers used to choose handsets based on the physical characteristics of the hardware, not the software inside; however, the iPhone changed that: more users are now shopping for their handset based on the operating system and software,” said Kevin Burden, mobile devices practice director for ABI Research.
ABI Research noted that while more and more smartphones and conventional phones are priced in similar ranges, the marketing strategies of handset makers and carriers must accommodate both groups of consumers: those who want a basic replacement phone, and those who care about what the OS can do for them.
Even though some smartphones are never subsidized with intention of becoming prestige items or to demonstrate a manufacturer’s design and innovation prowess, moderately priced smartphones can generate high volumes of sales, the research firm said.
According to ABI Research, by far the greatest increase in smartphone shipment volumes over the next five years will be found in the $100-200 price range.
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