Feature phones accounted for over 70% of global handset sales in 2011

Wednesday 1 February 2012, Amsterdam

While the mature market is consumed with high end Smartphones, Tablets and App stores the issue of oversaturation is still without a solution. For emerging economies penetration rates are low and for operators and OEMs these areas represent vast untapped potential revenue streams, but how best to capitalize? The feature phone ill remain a crucial device in manufacturer’s portfolios over the next five years as emerging economies come to fruition. Low cost and ultra low cost segments mean that no-one need be without a handset.

Many emerging economies suffer from underdeveloped infrastructure and in regions without widespread access to 3G Smartphone adoption is consequently low. Other factors that have added to the slow uptake of these devices centre on price and the unwillingness of key players from mature markets such as Apple and RIM to market and push their devices in this area. As a result the competitive landscape is ripe for new entrants, new devices and a potential monopoly for anyone providing a winning strategy.

This report offers forecasts of declining ASP’s for each device type. In depth regional information regarding operators, current subscriber data and detailed penetration rates is provided to ensure a through knowledge needed for segmentation. Further to this bill of material costs and average selling prices are cross referenced to outline the issue with margins when devising low and ultra low cost strategies. Key ecosystem players and up to date offerings are compared, contrasted and analysed to reveal winning strategies. Visiongain’s research has located gaps in the market where new entrants can step in to capitalise, gain market share and ultimately widen revenue streams.