The relentless smartphone growth in the Asia-Pacific region is set to slow dramatically in 2015. Asia-Pacific’s growth is set to drop from 43% in 2013 to 17% in 2014 and then to just 10 % in 2015, largely driven as ever by China, according to market intelligence firm ABI Research.
“A key driver of China’s predicted slower growth is China Mobile’s announcement in mid-2014 that it will be cutting handset subsidies by US$2 billion over the next 3 years,” says ABI Research Senior Practice Director Nick Spencer. “China Unicom and China Telecom quickly followed with their own cost-cutting plans. This is in response to the state-owned Assets Supervision and Administration Commission directive to carriers to cut costs on subsidies and marketing.”
Given China’s position as the largest smartphone market and supplier, a reduction in subsidy will accelerate the move in smartphone volume from high-end (US$400+) to mid and low (sub-US$200) tiers, placing further pressure on high-end vendors such as HTC, Samsung, Sony, HTC, and even Apple. “China’s OEMs will start to look outside of China to sustain its growth plans. We have already seen the likes of Xiaomi and Lenovo make ambitious moves outside of China; expect others to follow,” adds Spencer.
Furthermore, the overall growth of the handset market and indeed the smartphone market is beginning to slow, as it moves into the less affluent demographics. These demographic groups are clearly cost constrained and also typically have a much longer handset life cycle, which is nearer to 4 years than the 2 years in advanced markets. “As one might expect, this is leading to a shift in smartphone ASPs. The sub-US$200 smartphone tier will see growth of 14% from 2014 to 2019, whereas the US$400+ tier will see growth of only 5%, but still growth nonetheless,” continues Spencer.
These findings are part of ABI Research’s Smartphones and Handsets Market Research.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Asia: +65 6950.5670