Wednesday, April 22, 2015

Falling Smartphone Prices Remove Internet Adoption Barriers

Global smartphone sales likely grew 18 percent in 2014, led by big emerging markets such as China, India, and Indonesia, and driven by rapid price cuts for smartphones, according to consultants at Boston Consulting Group.

Mobile Internet penetration globally doubled from 18 percent in 2011 to 36 percent today in 2015. By 2017, mobile access will exceed fixed-line access, with 54 percent penetration compared with 51 percent. At that point, mobile will account for almost 60 percent of all spending on Internet access.

Mobile adoption will even higher in some countries and regions.

In sub-Saharan Africa, mobile penetration is about 60 percent, compared with less than two percent for fixed-line access. Ultimately, entire nations in Africa will access the Internet only through mobile devices.

One big impediment to mobile usage in developing economies has been the high price of smartphones, but that is changing quickly.

Google launched its Android One phone in India in 2014; this model retails for about $100. Another new smartphone launched in India, by Intex Technologies and its partner, Mozilla, retails for 1,900 rupees, or about $33. Xioami’s Redmi and Motorola’s Moto G devices are also lowering prices dramatically for smartphone consumers in India.

Average smartphone selling prices fell 25 percent worldwide between 2011 and 2013 and are expected to drop a further 19 percent by 2017,

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