Demand for smart-connected devices is expected to surge in emerging markets. Compounded annual growth in that region is estimated to reach 17% in the 2012-2017 time period compared with 7% in developed markets. Additionally, smart-connected device growth is expected to be led by demand for tablets and smartphones. The pair will be responsible for 1.4 billion of the 1.7 billion smart-connected devices to be shipped in 2014, according to IDC, with a dollar value of $500 billion. The slumping PC market is estimated to ship just a bit more than 300 million units next year, worth under $200 billion.
With shipments up, prices are coming down. The average selling price (ASP) of a tablet fell 19% in 2012 to $426 from $525 in 2011. The ASP of a smartphone dropped from 2011's $443 to $407 in 2012. In emerging markets, IDC sees smartphones priced under $300 on average next year and tablets weighing in under $350. In developing markets, the ASP for the two devices is forecast to be $490 for smartphones and $370 for tablets.