“Low-cost smartphone manufacturers create these new products quickly without much investment, which has allowed them to extend their telecom subscriber base to emerging regions,” said Shawn Lee, Research Director at NPD DisplaySearch.
Santa Clara, Calif. (PRWEB) October 22, 2012
The low-cost smartphone segment, defined as models with a selling price of less than $150, is a strong growth opportunity for the mobile phone industry, according to the new NPD DisplaySearch Smartphones: Displays, Designs and Functionality report. Low-cost smartphone shipments are forecast to double every year from 2010 to 2016, increasing from 4.5 to 311.0 million.
“Most mobile phone subscribers around the world can’t afford to spend more than US$200 for a smartphone, on top of their service plans,” noted Shawn Lee, Research Director at NPD DisplaySearch. “Low-cost smartphone manufacturers create these new products quickly without much investment, which has allowed them to extend their telecom subscriber base to emerging regions.”
Most of the demand (60%) is from the Asia Pacific region, where a large majority of component suppliers and manufacturing factories are located—providing both time and cost savings. These solutions have a shorter lifetime than high-end smartphones and are manufactured via ready-made solutions from application processor manufacturers. The product mix is complex, requiring continuous development cycles for new products.
To keep prices low, the key requirements for components are low cost and readily available supply. Android is the most popular operating system for low-cost smartphone designs because it is open source. Brands and manufactures tend to use mature, low-price components, rather than developing new ones. For the display, this means standard a-Si TFT LCD rather than high-resolution LTPS.
The penetration rate of Android-based low-cost smartphones is increasing, with NPD DisplaySearch forecasting their share to grow from 2% of total smartphone shipments in 2012 to 29% in 2016. Local brands and “white box” vendors in China have taken an aggressive stance in capturing market share.
The NPD DisplaySearch Smartphones: Displays, Designs and Functionality report analyzes the smartphone industry and eco-system including worldwide smartphone shipments; key components including application processor, display, touch panel, and cover glass; detailed analysis of the low-cost smartphone market; and analysis of solutions to reduce power consumption. For more information on this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, or contact(at)displaysearch(dot)com or contact your regional NPD DisplaySearch office in China, Japan, Korea or Taiwan.
About NPD DisplaySearch
Since 1996, NPD DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. NPD DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. In collaboration with The NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com. Read our blog at http://www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 2,000 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, entertainment, fashion, food, home and office, sports, technology, toys, video games, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.
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