Sub-$400 smartphones to make up the bulk of global smartphone shipments in 2020:IDC
The forecast could be attributed to coronavirus induced economic uncertainties which have slowed down the smartphone market.
Smartphone market trends 2020
Per the Q2 data, consumers prioritized smartphones priced between $100 and $400, giving the category a market share of 60 percent.
A breakup of the results shows that under $400 devices accounted for 85 percent of smartphone sales in most Asian Pacific countries, Central and Eastern Europe, Latin America, the Middle East, and Africa.
Market share of under $200 devices increased 10 percent year on year to 27 percent in the US during the last quarter.
The mid-to-high segment, which comprises smartphones with a price tag between $400 and $600, grew 4 percent in Q2 2020, which earned it a share of 11.6 percent.
The category grew the most in China with an 8 percent increase in market share to 21 percent during the second quarter of the year.
Samsung, Huawei, Xiaomi, OPPO, and Vivo dominated the segment in Q2. Apple is a new entrant in this price tier with its iPhone SE, and the phone is performing quite well, which is all the more indication that this is a hot category at the moment.
Average Selling Price of 5G-enabled smartphones expected to go below $500 in the long run
In the long term, smartphones priced between $400 and $600 are expected to see the highest growth, largely because of a projected drop to $465 in the average selling price (ASP) of 5G-ready phones.
The rising affinity for affordable smartphones will supposedly pose a challenge for premium handsets, intensifying competition in the higher-priced segments.