Low-Cost and Ultra-Low-Cost Handsets

Entry-Level Devices for Developed and Emerging Markets

Research Report

The entry-level handset market, which is comprised of low-cost and ultra-low-cost devices targeted at the lowest-income consumers in developing economies, continues to gain momentum. As worldwide mobile phones sales begin to rebound after the economic downturn, the low-cost and ultra-low-cost segments of the market are expected to see strong growth.

The downward price pressures on entry-level devices continue. Cooperation among ecosystem players has driven down the cost of mobile phones, while at the same time producing devices that better meet the needs of the user base. The low-cost sub-segment is now defined as devices that cost less than $60, and the ultra-low-cost sub-segment is comprised of phones with a price tag of $25 or less. Aside from falling prices, this segment of the mobile phone market is also characterized by feature evolution and increased competition.

Table of Contents

  • 1. Executive Summary
    • 1.1. Entry Level Handsets
    • 1.2. Feature Evolution
    • 1.3. New Entrants
    • 1.4. Drivers
    • 1.5. Barriers
    • 1.6. Market Forecasts
    • 1.7. Recommendations
  • 2. Market Issues
    • 2.1. Background
    • 2.2. Definition
      • 2.2.1. Entry Level Handsets: Low-Cost and Ultra-Low-Cost
    • 2.3. Price Points
    • 2.4. Market Segmentation
    • 2.5. ASP
    • 2.6. Application and Services Support
    • 2.7. Key Markets
  • 3. Market Considerations, Drivers, and Barriers
    • 3.1. New Markets and Growing Subscriber Bases
    • 3.2. Competition
    • 3.3. Import Tariffs
    • 3.4. Manufacturing and Supply Chain
      • 3.4.1. Local Manufacturing
      • 3.4.2. Distribution Channels
    • 3.5. ARPU
    • 3.6. Subsidies and Contracts
    • 3.7. Gray Market
    • 3.8. 3G Entry Level Devices
    • 3.9. GSM vs. CDMA
    • 3.10. Royalties
    • 3.11. Global Economic Downturn
  • 4. Handset Issues and Considerations for Emerging Markets
    • 4.1. Handset Lifespan
    • 4.2. Single Chip
    • 4.3. Dual SIM
    • 4.4. Access to Power and Battery Life
    • 4.5. Accessories
    • 4.6. Language and User Interface
    • 4.7. Feature Sets
    • 4.8. Importance of Handset Ownership
  • 5. Market Forecasts
    • 5.1. Methodology
    • 5.2. Segmentation Definitions
    • 5.3. Key Market Assumptions
    • 5.4. Market Forecasts
  • 6. Company Directory
  • 7. Acronyms
  • Executive Brief: Top-Line Forecast
  • Executive Brief: Drivers
  • Executive Brief: Inhibitors
  • Executive Brief: Summary and Strategic Recommendations

Tables

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  1. ASPs by Entry-Level Segment, World Markets, Forecast: 2010 to 2015
  2. Handset Shipments by Category by Units, World Markets, Forecast: 2010 to 2015
  3. Handset Shipments by Category by Percentage, World Markets, Forecast: 2010 to 2015
  4. Handset Shipments by Region, World Markets, Forecast: 2010 to 2015
  5. Low-Cost Handset Shipments by Region, World Markets, Forecast: 2010 to 2015
  6. Ultra-Low-Cost Handset Shipments by Region, World Markets, Forecast: 2010 to 2015
  7. Total Handset Shipments by Technology, World Markets, Forecast: 2010 to 2015
  8. Low-Cost Handset Shipments by Technology, World Markets, Forecast: 2010 to 2015
  9. Ultra-Low-Cost Handset Shipments by Technology, World Markets, Forecast: 2010 to 2015

Charts

  1. Ultra-Low-Cost and Low-Cost Handset Shipments World Markets, Forecast: 2010 to 2015
  2. Ultra-Low-Cost Handset Feature Penetration World Markets: 2010
  3. Low-Cost Handset Feature Penetration World Markets: 2010
  4. Handset Shipments World Markets, Forecast: 2010 to 2015
  5. Ultra-Low-Cost and Low-Cost Handset Shipments World Markets, Forecast: 2010 to 2015