The global smart connected devices shipments, including PCs, tablets, and smartphones, are expected to surpass 1.7 billion units by 2014, according to a IDC’s latest report.
IDC’s Worldwide Quarterly Smart Connected Device Tracker revealed that about one billion of the overall shipments will be shipped to emerging markets.
Shipments of smart connected devices in BRIC countries including China, India, Brazil, and Russia are anticipated to reach 662 million units worth over $206bn, with shipments in developed markets reaching about 650 million units.
Within the developed markets, the USA, the UK, and Japan are expected to capture about 400 million units with a shipment value of around $204bn.
The report also reveals that the BRIC countries would overtake the total shipments to developed markets by 2014, representing a clear shift in demand from developed to emerging markets that are expected to rise at a compound annual growth rate (CAGR) of 17%over the 2012-2017 period, compared to the developed markets’ CAGR of 7% .
IDC Worldwide Smart Connected Device Tracker research analyst, Megha Saini, said it is evident that smartphones and tablets have successfully established a strong presence as the ‘second screen’, owing to the transformation in usage patterns, device affordability and, most of all, the comfort of a mobile and digital lifestyle.
"Vendors and OEMs need to be aware of the different usage patterns so as to drive product innovation that suits the tangible needs of their digital consumers," Saini said.
The rising demand for smartphones and tablets in both emerging and developed markets would drive the smart connected device market.
In 2014, shipments of smartphones and tablets are expected to reach 1.4 billion units of the overall 1.7 billion smart connected devices to be shipped during the period, which represents more than $500bn in value.
However, PCs are anticipated to capture a small market with about 300 million units shipped and a shipment value around $200bn.
According to the research firm, the rise in global smartphone and tablet shipments is reducing the average selling price (ASP) of mobile computing devices.
In 2012, Tablet ASPs declined 19% year over year to $426 from $525 in 2011, while smartphone ASPs declined 8.2% to $407 from $443 the previous year.
Further, this pattern of declining price points is mainly observed in emerging countries where expects sub-$300 smartphones and sub-$350 tablets are expected to drive huge shipments in 2014 and beyond, while smartphones and tablets in developed markets will continue to generate higher ASPs of $490 and $370, respectively, in 2014.
IDC Clients and Displays program VP, Bob O’Donnell, said smartphone and tablet prices are now less prohibitive to first-time buyers in emerging markets.
"Although the double-digit growth of smartphones and tablets in emerging countries is a mouthwatering prospect, the low selling price also means that vendors will face huge struggles to meet the demands profitably," O’Donnell said.
"Given the competitive price points for cheaper smartphones and tablets, this price war is a race to the bottom and it’s not at all clear that this low-end market offers sustainable profits to smartphone and tablet vendors."
The report also reveals that rise in the use of mobile applications, such as mobile messaging, gaming, social networking, and social commerce has been fuelling the growth of smart connected devices in emerging markets.
This article is from the CBROnline archive: some formatting and images may not be present.
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