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Entry Level Models Drive 9% Growth in Smartphones Next Year
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Entry Level Models Drive 9% Growth in Smartphones Next Year

Jan 01, 2010
The sales of Smartphones are anticipated to jump 9% next year on account of strong demand from China and Russia and low price of entry level models.

According to Gartner, the sales of Smartphones are expected to rise 9% next year (2010) although the current year (2009) has seen flat growth rate. This projected impetus will come from two burgeoning economies Russia and China, as reported by TheStreet.com.

The volume of Smartphones is expected to account for 14% of overall mobile devices sales in 2009, an increase of 23.6% from 2008. The Smartphones share will climb to new heights of 38% by 2013.

The growth of Smartphones in fast developing countries is accredited to operators’ aggressive marketing of Smartphone through a large portfolio including attractive pricing for services. The enhancement of portfolio made Smartphones accessible to a large number of consumers.

The entry level Smartphone models, which see strong demand and have bigger space for future growth owing to higher margins, will drive more and more companies (including the existing cell phone makers) to harvest the benefits. In fact, these models will take the leading position in the 2010 market.

The main reason for prospective boom in the uptake of entry level Smartphones is their price range between feature phones and high end Smartphones. On the other hand, the average price of Smartphones is three folds of feature phones and ten folds of basic phones. Hence, affordable price range along with enhanced features will stimulate sales and expand the Smartphones market.

The global market for Smartphones possesses immense growth potential given the fact that penetration rate of Smartphones is very low. Thanks to tough competition among vendors, the prices will further drop, which in turn lead to higher Smartphones sales, says “Consumer Electronics Market Forecast to 2012”, a recent market research report by RNCOS.

According to a Research Analyst at RNCOS, “Handset manufacturers and carriers should work together more closely in order to tap the huge sales potential of Smartphones, particularly in emerging markets. Abreast with local conditions is critical for Smartphone vendors as different markets require different strategies; for instance - the method of payment (prepaid or postpaid), prevalence of subsidies and the level of competition play critical role in the uptake of Smartphones.”

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