Smartphones are Getting Cheaper

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  • Shaven-headed young boys operate smartphones in Seoul on Wednesday. They are entered a temple to have an experience of monks' life for three weeks, called Little Buddha Camp, to celebrate upcoming Buddha's birthday on May 17. AP/Ahn Young-joon

    Shaven-headed young boys operate smartphones in Seoul on Wednesday. They are entered a temple to have an experience of monks' life for three weeks, called Little Buddha Camp, to celebrate upcoming Buddha's birthday on May 17. AP/Ahn Young-joon

    TEMPO.CO, Jakarta - Research firm International Data Corp. (IDC) predicted that this year’s shipments of smartphones will reach as high as 958,8 million units. The number is a 32,7-percent increase compared to last year’s shipments, which only amounted to 722 million units.

    Developing countries are still lucrative markets for smartphone marketing. The potential market percentage in developing countries reached 64,8 percent, which is a sharp rise from three years ago, which only amounted to 43,2 percent.

    The future price of smartphones will decline along with the intensification of competition in the market. 2 years ago, the average price of a smartphone reached US$ 408. A year later the average price was cut to US$ 47. This year it will decline to US$ 372, and in 2017 it will decline to US$ 309.

    Cellphones will also grow more sophisticated. Producers will produce more phones with 3G features compared to feature phones. According to Ramon Llamas, Research Manager of IDC’s Mobile Phones Team, this year will be the year cellphone producers spur their smartphone productions. "Smartphones have become their primary value proposition going forward. In some cases, smartphones have accounted for well over 50% of their quarterly shipment volume," he stated.

    3G smartphones will later become normal phones. This is because when high-end smartphones use 4G connections, 3G smartphones will become low-end smartphones. The amount of 3G smartphone productions this year is 70 percent. In 2017, the number is forecasted to shrink to only 50 percent.



    NUR ROCHMI | PHONEARENA | DIGITIMES