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Handset market growth seen at 8pc in 2011

Cambridge, December 23, 2010

The global handset market will grow roughly eight per cent in total handset unit sell-through in 2011, resulting in more than 1.4 billion devices sold, said a report.

Basic ultra-low cost handsets, inexpensive smartphones, and Android-based devices will see the most demand in 2011, according to a new report from Pyramid Research, a leading US-based authority on telecom’s emerging opportunities.

In 2011-2015, 70 per cent of new handsets sales will be derived from emerging markets, according to the report.

"The demand in these markets will remain skewed toward very basic, ultra-low cost handsets in 2011 and, given the size of these markets, their preferences will dictate the global demand trends, too," said Stela Bokun, senior analyst at Pyramid Research.

Pyramid expects that some demand for inexpensive basic models will come from the developed markets, too.

"The underpenetrated market segments in these countries are children and seniors. On average these users seem to opt for the simplest cell phone models, which often offer only text messaging within its data functions," Bokun noted.

While smartphones have seen a skyrocketing demand in developed markets in 2010, Pyramid projects even stronger demand for these handsets in emerging markets going forward.

"The demand for low-cost smartphones in these regions has been on the rise in the second half of 2010, and will culminate in 2011," said Bokun.

The growing popularity of Android OS will be one of the drivers of this trend, she said.

"The expansion of Android, typically associated with more inexpensive smartphones, will be particularly pronounced in the Latin American and Asia/Pacific markets, which are characterized by high price elasticity due to their lower average income levels," Bokun added. – TradeArabia News Service




Tags: Smartphones | Android | 2011 | Handset market | Pyramid Research |

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