Smartphone shipments are expected to reach an industry-record of $300 billion by the end of the year.
While cost, or lack there of, is a major factor contributing to the growth of smartphone sales in emerging markets, developed markets are not yet saturated.
Smartphone shipments are set to hit a record high by the end of 2014, reaching $300 billion in wholesale shipment revenues up from $280 billion in 2013.
A big shout out to Apple is necessary for the boost in smartphone shipments, as the company is predicted to contribute a whopping $100 billion with its latest iPhone 6 and iPhone 6 Plus revenues this year alone! This is the first time in history for any mobile phone manufacturer.
Why has Apple continued to thrive? Brand name.
Apple’s strong branding has enabled the company maintain its pricing power, helping to offset declines in the broader industry. Apple’s average sales price (ASP) stood at around $605 in the third quarter, when it launched its new devices, up from $560 in the previous quarter.
The smartphone price plummet
Cheaper smartphones have gained momentum, as prices have dropped from $407 to $372 this year.
While mature markets are clearly still delivering strong revenues with average selling prices over $400, emerging markets are also barreling along, but with average selling prices of less than $250. According to Juniper Research, the average selling price of a smartphone will decline globally to reach $274 within five years.
Will smartphone shipments continue steady sales in 2015?