The mass segment rules the smartphone market
Users prefer smartphones with a price tag of up to $ 400
Reduced consumer demand, crisis and inflation are pushing the cost of smartphones up. As a result, the flagship market has shrunk, and users are increasingly choosing to buy something cheaper for daily use. The demand for affordable smartphones is consistently high, and according to IDC analysts, devices under $ 400 account for 73% of global handset shipments in 2020.
Most of all in the second quarter of this year, consumers preferred gadgets with a price tag of $ 100 to $ 400, which allowed this price category to occupy 60% of the global smartphone market. Such devices were most actively purchased in Latin America, the Middle East, Central and Eastern Europe, Africa and the Asia-Pacific region. Interestingly, in the United States, where they do not save on the purchase of smartphones, the demand for affordable devices with a price tag of up to $ 200 also increased – from 20% to 27%.
For the middle price segment, which fluctuates within the range from $ 400 to $ 600, it accounted for 11.6% and by the end of the second quarter of this year it grew by 4%. Most actively such smartphones were purchased in China, where their share increased from 8% to 21%.
Analysts predict that demand for models with a price tag of $ 100 to $ 400 will continue to grow, as users increasingly prefer affordable devices. 5G smartphones will gain more and more popularity, the average price of which will be $ 465 in 2024.