Smartphone share will reach 37% China may become the largest market
A new report released by Pyramid Research pointed out that by 2014, the proportion of smartphones in the global mobile phone market will rise from 16% in 2009 to 37%.
The report released last weekend predicted that most of the growth will come from outside the United States, mainly in emerging markets.
China is likely to surpass the United States next year and become the world's largest smartphone market. Latin America will be the fastest growing region in the next 5 years. The compound annual growth rate (CAGR) of smartphone sales is expected to be as high as 48%.
Omar Salvador, a senior analyst at the company, pointed out: "Under the more diverse choices of telecom operators, more attractive service pricing and new solutions for promoting smartphones, Pyramid expects China to take the first place in 2010. He said: "Brazil, India, Turkey and Nigeria will be the fastest growing markets in the next five years, with CAGR reaching 43%, 39%, 37% and 34% respectively. Latin America will be the fastest growing region, compound The average annual growth rate is 48%, followed by Africa and the Middle East with a CAGR of 39%. "
Pyramid predicts that smartphone sales will reach 1.8 billion units in the next five years. For mobile phone manufacturers and mobile telecom operators, this number represents a huge business opportunity. However, the report pointed out that the growth of mobile users is gradually slowing down, and manufacturers are facing pressure to strengthen data services and application software. These are the main selling points of smart phones.
Pyramid believes that especially in emerging markets, mobile phone manufacturers and telecom operators must work more closely to realize the huge sales potential of smart phones.
However, due to different billing methods, subsidies, and competition levels, a consistent smartphone strategy has proven difficult to implement. In the United States, where there is no upper limit for subsidies and a higher degree of competition, telecommunications operators, such as AT & T, use higher subsidies, unlimited data usage, and exclusive smartphones (Apple iPhone) to attract customers . On the contrary, Russia limits the price subsidies for smartphones, focusing more on value-added services, lower service fees, and free trial periods.
Salvador said: "Understanding local differences is critical for telecom operators, smartphone manufacturers, and operating system developers. Because of the billing methods (post-paid or pre-paid), the popularity of subsidies and Competitive scale, and operating system market share, operating strategies must be significantly different. "
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