Published in Mobiles

Smartphone shipments going up

ASPs plunging

Smartphone shipments are expected to hit one billion units this year, according to research firm IDC.

This is 39 percent increase year-on-year, but average selling prices are expected to fall 12.8 percent, from $387 to $337. If the trend continues, the average smartphone sold next year could cost close to $300. By 2017 the price ASP should hit $265.

"The key driver behind smartphone volumes in the years ahead is the expected decrease in prices," said IDC research manager Ramon Llamas. "Particularly within emerging markets, where price sensitivity and elasticity are so important, prices will come down for smartphones to move beyond the urban elite and into the hands of mass market users."

What’s more, there’s not much of a slowdown. IDC expects smartphone shipments to keep growing at a compound annual growth rate of 18.4 percent, eventually hitting 1.7 billion units by 2017.

Oddly enough, ASPs in North America are expected to go up, not down. By 2017 the average smartphone sold in America or Canada will cost $567, but in Europe the ASP will hit $259. On the other hand, although Europe will end up with crappier phones, it will at least have universal healthcare. 

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