By the year 2016, China might take over several other countries around the globe to become the top smartphone market, predicts a recent IDC report. In addition to this, emerging markets such as India and Brazil are likely to figure among the top five regions demanding smartphones.
This growth observed in the upcoming markets is mainly being attributed to factors like sheer size, strong demand and healthy replacement rates. According to the new report, China has exceeded smartphone shipments in the U.S. through both quarters in the second half of 2011. The company expects PRC to carry that momentum in 2012 and the years to come as well.
“The total cost of ownership remains a hurdle for potential smartphone buyers. Smartphones still represent a significant investment for consumers in many countries. This fact was acknowledged by a number of industry executives at the recent Mobile World Congress in Barcelona, who stressed the need for low-cost devices – as low as sub-US$50 – to spur widespread adoption,” commented Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team.
“Another notable barrier to adoption is the cost of a monthly data plan. To realize the full potential of emerging markets, smartphone vendors need to develop low-cost smartphones that provide a full, robust experience while mobile operators will need to creatively subsidize device cost and data plans,” added Llamas.
On the other hand, India is seeing a rise in the number of options from domestic vendors who are delivering low-cost smart handsets as well as international and top-tier brands which are anticipated to invest more towards local manufacturing in the future. Brazil is currently observing a transition from feature phones to smartphones.
Existing mature markets like the UK and Japan should continue seeing growth in smartphone adoption, but they might not be able to keep up with emerging markets in terms of volume. This IDC report on smartphone markets treats any mention of vendor shipments as branded ones that exclude OEM sales for all vendors.