Global shipment of smartphones seen rising 31% this year

MANILA, Philippines - Taipei-based research firm TrendForce sees worldwide shipment of smartphones jumping 32 percent this year with the introduction of cheaper units in the past few months.

TrendForce said global shipment of smartphones is expected to reach 928 million units this year after growing 31.4 percent to 221 million units in the second quarter from a year ago level.

Due in part to the increasing maturity of smartphones, the availability of free, open source platforms such as Android, and the active measures taken by smartphone makers to lower manufacturing costs, the research firm said it is now possible to obtain smartphone devices that are priced at less than $100.

As mid-end smartphones are already able to fulfill the general entertainment and web browsing needs of smartphone users, models priced in the $150 to $450 range are becoming increasingly more popular among consumers.

It added that the demand for high end smartphone models is gradually shrinking, and this is in turn limiting the potential profits available to high-end smartphone manufacturers.

During the second quarter, the shipment of Samsung’s entire smartphone line arrived at an estimated 71 million units despite the Galaxy S4 ended up falling short of expectations.

TrendForce reckons that the Korean company may have still managed to ship a total of 23 million Galaxy S4 handsets.

Samsung’s channel and brand marketing campaign efforts have so far paid off especially well in rapidly emerging markets such as China, where the Korean company remains one of the most widely recognized global smartphone brands.

Facing increased competition from legitimate competitors such as Samsung, hTC, SONY, and LG, Apple managed to ship only 22 million iPhone 5 units during the second quarter, TrendForce said.

The shipment for Apple’s entire iPhone line, on the other hand, increased 30 percent to end the quarter at 27 million units.

Benefiting from growing domestic demand, Chinese branded smartphone shipments have risen 44 percent compared to the numbers in 2012.

The four most popular Chinese smartphone brands that are currently gaining a lot of global recognition include Huawei, ZTE, Lenovo, and Coolpad.

TrendForce sees the shipment of mid-end smartphones to rising 8.6 percent to 130 million units in the third quarter and would account for more than 50 percent of all the shipments of smartphones worldwide.

Throughout third quarter, the company said Android smartphone makers such as Samsung, SONY, hTC, and LG are expected to release a wider assortment of mid-ranged devices as a means to attract consumers.

In Southeast Asia, GfK Account Director for Digital World Gerard Tan said smartphone consumers continue to grow steadily, propelling the region’s overall smartphone market expanding by 14 percent from April 2012 to March 2013.

“Growth in this region is primarily driven by affordable smartphones which averaged in the price range of $100 to $200. However, the rise of local brands in countries such as Philippines and Indonesia has resulted in the growing market share of those in the $50-100 price segment – the budget price range which bridges the transition from basic mobile phones to smartphones,” he said.

Latest GfK findings revealed that the Philippines recorded a 146-percent increase in smartphone take-up rate, the highest growth in the region during the period.

Keeping up with the smartphone revolution and demand for mid-priced handsets, telco giant Globe Telecom is offering the widest range of gadgets available to subscribers for free at Plan 499.

 â€œWith Globe, subscribers have the power to choose. From the Best-Ever MySuperPlan which empowers them to create and customize their postpaid plan based on their needs and lifestyle, now they can have their gadget of choice from our extensive array of smartphones available for free at Plan 499. No matter what operating system (OS) you prefer, there is a free smartphone for you from Globe,” said Raul Macatangay, head of Globe Postpaid.