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ABI Research: Emerging economies to fuel demand for entry-level handsets

December 17, 2010 by Dusan Belic - Leave a Comment

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As the world is rebounding from the economic downturn, emerging economies will fuel demand for entry-level handsets, according to the new report from ABI Research.

The research company predicts that the shipments of ultra-low-cost handsets will grow to more than 360 million by 2015, representing a 2010-2015 CAGR of over 22%. At the same time, low-cost handsets will reach 249 million units shipped. Unsurprisingly, key markets for these products are China, India, Africa, Latin America, and some developing economies in Asia.

The low-cost sub-segment is defined by devices that cost less than $60, with prices expected to fall to $40 by 2015. The ultra-low-cost sub-segment, currently comprised of phones with price tags of $25 or less, will see handsets available to the end-user for $16.00 or less.

In order to stay competitive, ABI Research suggests that handset vendors continue seeking efficiencies in their manufacturing and supply chain processes, while maintaining quality. In addition, the varied customer bases for entry-level devices require OEMs and ODMs to segment the market to better serve the needs of their customers…

And you can get additional information from ABI Research’s website.

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