The number of global smartphone shipments is expected to reach one billion per annum in 2016, up from 302 million in 2010, according to a new report published by analyst firm Juniper Research.
Smartphones will make-up the majority of shipments in five years’ time, as this type of devices become available at lower price points.
Juniper believes the best opportunity for new players is through economy models (those with an un-subsidized retail value of $150 or less).
However, the market for standard smartphones ($151-$399) and premium smartphones ($400 and above) will remain upbeat.
Juniper predicts that open-source operating systems – predominantly Android – combined with the falling cost of key components will make this possible.
Smartphones report author Daniel Ashdown said in developed markets, many consumers will want to upgrade from a feature phone to a smartphone, but still pay a feature phone price.
"In emerging markets though, lower average consumer spending power and lack of operator subsidies will make a low price point essential," Ashdown said.
