Recent economic uncertainty has affected the smartphone market, forcing customers to choose more affordable models: it is expected that in 2020 73% of sales will be on devices cheaper than $400. This forecast is given by IDC analysts.
They expect that the total value of smartphones sold worldwide in 2020 will be 7.9% less than in 2019 – 422.4 billion dollars against 458.5 billion dollars. According to analysts, consumers are increasingly stopping at lower and middle segment devices, giving priority to spending on basic necessities.
Devices of the lower and middle price segments (from 100 to 400 dollars) dominated the world supply of smartphones in the second quarter of 2020. They accounted for 60% of sales. In the short term, they are expected to grow to 63%. The share of products worth $400-600 increased from about 8% to 11.6%.
Price pressures are noticeable around the world, but are most evident in developing regions such as Asia Pacific (excluding Japan and China), Latin America, the Middle East and Africa, and Central and Eastern Europe, where devices worth less than $400 have captured up to 85% of the market. Even in the wealthy United States, the share of smartphones worth less than $200 per year increased from 17% to 27%.