Emerging mobile markets to account for 80% of smartphones by 2020: GSMA

Emerging telecom markets are expected to account for 80 percent of smartphone connections by 2020, said GSMA.

India ranked no. 4 in top ten global smartphone markets.

Developing world overtook the developed world in terms of smartphone connections in 2011 and today accounts for two in every three smartphones. By 2020, this is expected to increase to four out of every five smartphone connections worldwide.

This growth is led by China, the world’s largest mobile market, with 629.1 mobile connections.

Though smartphone penetration in Asia Pacific is currently below 40 percent, it accounts for about half of global smartphone connections worldwide.

Top ten global smartphone markets, Q2 2014

Source: GSMA Intelligence

Country Smartphone connections (millions)
1 China 629.2
2 United States of America 196.8
3 Brazil 141.8
4 India 111.0
5 Indonesia 95.0
6 Russian Federation 83.9
7 Japan 66.1
8 Germany 48.5
9 United Kingdom 45.4
10 France 43.5

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Growth drivers

Rapid erosion of the Average Selling Price (ASP) of smartphones is accelerating user migration from basic and feature phones to smartphones.

Demand for low-end smartphones is driving volume growth, with sub-$50 smartphones becoming a reality.

Operator-branded smartphones sold via operator retail channels is a key trend driving the low-end segment.

Operator subsidies continue to play an important role in driving the adoption of high-end devices, but are being scaled back at lower price tiers.

The availability of 4G-LTE smartphones is influenced by the pace of allocation and assignment of 4G spectrum by regulators around the world.

Asia Pacific has been the fastest growing smartphone region over the last three years (94 percent CAGR 201-2013).

Smartphone connections in Asia Pacific region surpassed 1 billion in this year and will more than treble by 2020 (3 billion plus).

By the end of this year Asia Pacific will account for about half of the world’s smartphone connections, driven mainly by growth in China.

China is the world largest smartphone market, forecast to surpass 700 million smartphone connections in the current quarter, and topping 1 billion by 2020

Smartphone penetration in Asia Pacific was 40 percent; but is still below 20 percent in large markets such as India, Bangladesh and Pakistan.

Baburajan K


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