About 46% of the smartphones will be low cost phones, priced bellow $250 by 2018 compared to 28% in 2012, according to a new report from ABI Research.
According to the report, the number of low-cost smartphones will grow from 259 million in 2013 to 788 million in 2018.
Mid cost smatphones with a price range below $400 and high cost smartphone shipments, whose price is above $400 are expected to rise from 635 million units to 925 million units during the period.
According to the report, smartphone shipments account for a larger share of mobile handset shipments than feature phones and low-cost handsets.
ABI Research senior analyst Michael Morgan said, "As the feature phone segment continues to lose its battle for relevance, the low-cost smartphone has become the tool for operators seeking to drive increased data revenues."
The growth of smartphones in pre-paid and emerging markets is expected be the main drivers of growth of low-cost smartphones.
The report revealed that the mid- and high-cost smartphones are expected to play an important role as mobile operators will be offering their customers with most advanced smartphones.
Mobile operators who are upgrading their network will expect better handset users to deliver enhanced services, while the premium smartphones tend to carry the most advanced wireless connectivity, the report said.
ABI Research senior practice director Jeff Orr said: "As smartphone penetration moves from early adopters to mass-market and laggard consumer segments, the smartphone as a product will be less dependent on technical superiority, and more dependent on reliability and value."
