FRAMINGHAM, Mass.–(BUSINESS WIRE)–Sep 17, 2020–
Economic uncertainties have increased the downward pressure on smartphone prices globally with 73% of shipments in 2020 expected to be priced below $400, according to a new price band forecast from the International Data Corporation ( IDC ) Worldwide Quarterly Mobile Phone Tracker. Worldwide smartphone value is expected to decline 7.9% in 2020 to $422.4 billion, down from $458.5 billion in 2019. The downward trend is intensified by consumers turning to devices priced in the low-to-mid range as they prioritize spending on essentials.
Overall, the low-to-mid end segment ($100 to less than $400) dominated global smartphone shipments with 60% market share in the second quarter of 2020 (2Q20) and is expected to grow in the short term to 63% by next year. The mid-to-high end segment ($400 to less than $600) grew its share of the market by almost 4 points to 11.6% in 2Q20. Devices from Samsung, Huawei, and other Chinese vendors like Xiaomi, OPPO, and vivo are the main vendors driving these segments. Apple also recently entered the mid segment with its new iPhone SE device, which has performed well, further validating the trend toward more budget-friendly devices.
“Rising unemployment rates and job uncertainty have influenced consumers’ buying patterns towards economic and affordable products. Subsequently, the overall portfolio in smartphones is moving toward low-to-mid end devices,” said Sangeetika Srivastava, senior research analyst with IDC’s Worldwide Mobile Device Trackers. “This has intensified competition as market players need to continue presenting attractive deals and bundling offers to encourage consumers to purchase a new device, especially in the higher-priced segments.”
The pressure on prices is reflected worldwide, though it is most obvious in developing regions like Asia/Pacific (excluding Japan and China) (APeJC), Latin America, Middle East & Africa (MEA), and Central & Eastern Europe (CEE) where under $400 devices captured up to 85% of the market in 2Q20. Even in the U.S., devices under $200 increased their share 10 points year over year to capture 27% of the market in 2Q20. In China, the mid-to-high end segment ($400-$600) grew the most with an 8-point increase in market share to 21% in 2Q20.
“Looking forward, as consumers increasingly want a better value proposition from their phones, the low and mid segments ($100-$200 and $200-$400) will remain the most popular. However, in the long term, IDC expects the fastest growth will be in the $400-600 price band as 5G sales grow and the average selling price (ASP) for 5G phones drops to $465 in 2024,” said Nabila Popal, research director with IDC’s Worldwide Mobile Device Trackers.
A graphic illustrating IDC’s worldwide smartphone forecast by price band is available by viewing this press release on IDC.com.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.
For more information about IDC’s Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or email@example.com.
Click here to learn about IDC’s full suite of data products and how you can leverage them to grow your business.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group ( IDG ), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog—Subscribe.
All product and company names may be trademarks or registered trademarks of their respective holders.
View source version on businesswire.com:https://www.businesswire.com/news/home/20200917005149/en/
CONTACT: Nabila Popal
+91 80669 91000
KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: MOBILE/WIRELESS TECHNOLOGY SEMICONDUCTOR OTHER TECHNOLOGY TELECOMMUNICATIONS SOFTWARE NETWORKS INTERNET HARDWARE CONSUMER ELECTRONICS
SOURCE: International Data Corporation
Copyright Business Wire 2020.
PUB: 09/17/2020 08:30 AM/DISC: 09/17/2020 08:31 AM