Sub-$200 smartphone market grows to 43% of global volume, says IDC

Sub-$200 smartphone market grew to 42.6 percent of global volume or 430 million units last year, IDC said.

Presence in both the low and high-end product categories assisted Samsung to continue as the smartphone leader in 2013, IDC said.

On the other hand, LG could not utilize this marketing strategy because the Korean smartphone vendor did not add enough devices for the low-end users.

While the market moves downstream to cheaper products it makes sense for Samsung and others to continue their marketing investments geared toward high-end products. These efforts build crucial brand perception while having less expensive alternatives that closely relate to these top products helps to close the deal.

Samsung smartphone

Ryan Reith, program director with IDC’s Worldwide Quarterly Mobile Phone Tracker, said: “Samsung has done exactly this with the Galaxy line. The family name is associated with Samsung’s high-end products, yet there are Galaxy variants offered by Samsung at much lower price points than the Note 3 and S4.”

IDC warned that the era of double-digit annual growth in the smartphone market is set to diminish. IDC does not say when.

“While smartphone market growth remained strong in 2013, it should be noted that the era of double-digit annual growth has only a few years remaining,” IDC said.

Mobile handset vendors are doing all they can to capture demand while it is still present.

Worldwide smartphone marketing campaigns continue to stay focused on flagship devices like the iPhone 5S, Galaxy Note 3, and the HTC One, yet research shows that consumer buying is rapidly shifting toward products with significantly lower price points.

Mobile World Congress 2014 will be a platform for the new launches.

Anand B


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