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Asia to account for 39% of smartphone shipments in 2015

Wednesday, March 17, 2010
By Gina Roos

imsresearchlogoAustin, Tex. —: Smartphone shipments to Asia are expected to more than quadruple by 2015, accounting for 39 percent of total smartphone shipments in 2015, reports IMS Research.

Global shipments of smartphones are forecast to increase at a compound annual growth rate of 25.9 percent between 2010 and 2015. IMS researchers said this trend shows a continuing increase in the development of cell markets in Asia, driven in part by 3G network expansions in China and an expected rollout in India

In addition, the populations of these countries are significant enough to drive substantial smartphone growth, even if they only make up a relatively small portion of the country’s total handset shipments, said Chris Schreck, IMS research analyst, in a statement.
“Secondly, smartphones are becoming increasingly affordable. As the minimum hardware components required to support smartphone features continues to decline in price, smartphones have become mass market devices, rather than luxury purchases,” Schreck said.

However, Schreck notes that there are several challenges for many traditional players in the smartphone market that require some adaptation to specific regional markets as both Motorola and Apple learned. As examples, Motorola, and others, had to change the default search provider from Google to Microsoft on its Android phones in China, and Apple’s iPhone sales lagged in Japan because the phones lacked NFC.

Another challenge is increasing competition from Asian handset vendors like Huawei, ZTE, HTC, and Acer in the Asian market, said Shreck. He also said the grey market for mobile handsets is much more established in Asia than in western markets, giving consumers alternatives to more conventional handset purchasing methods.
IMS Research defines smartphones as mobile handsets that use an “open architecture operating system” and expects that a majority of smartphone shipments to Asia will be entry-level devices, with average selling prices (ASPs) of less than $120 before subsidies or taxes.

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