Emerging markets will drive the next big wave of tablet and smartphone adoption after research firm IDC's report found that 1 billion smart devices will be shipped to these markets by 2014. According to the report, worldwide shipments of smart connected devices such as tablets and smartphones are expected to cross 1.7 billion units by next year, which means a significantly larger chunk of the shipments will be going to emerging markets.
Even within the emerging markets, BRIC countries such as China, India, Brazil, and Russia are expected to generate shipments of 662 million units, and the shipment value is said to be more than $206 billion. The demand for smartphones and tablets in these markets will also lead to a decline in the average selling price (ASP) of mobile devices, as we had reported ealier.
Talking about developed countries, IDC forecasts more than 400 million units with a shipment value of $204 billion will be generated from United States, UK, and Japan. The report clearly suggests that BRIC countries will surpass developed markets in terms of total shipments by 2014. There has been a shift in demand for smart devices in emerging markets. Developing nations such as China and India are witnessing an increased demand in smart devices. Needless to say, the buying audience in developing markets are only getting introduced to smart devices and first-time users constitute a large portion of the total consumers.
Megha Saini, Research Analyst with IDC's Worldwide Smart Connected Device Tracker said, “It is evident that smartphones and tablets have successfully established a strong presence as the 'second screen', owing to the transformation in usage patterns, device affordability, and, most of all, the comfort of a mobile and digital lifestyle. Vendors and OEMs need to be aware of the different usage patterns so as to drive product innovation that suits the tangible needs of their digital consumers.”
On the other hand, Bob O'Donnell, Program Vice President, Clients and Displays said that although the double-digit growth of smartphones and tablets in emerging markets is a great prospect, the low-selling point means that vendors will face a lot of struggle to meet demand profitably. He said that the price war is a race to the bottom and it's not at all clear if the low-end market offers sustainable profits to smartphone and tablet vendors.
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