Low-end smartphone suppliers, particularly in emerging markets, could have a large impact on the overall smartphone market in 2014 and beyond and perhaps the first evidence is the news that Chinese smartphone maker Xiaomi has announced plans to enter 10 foreign markets later this year, including Brazil, Mexico and Russia, in a bid to expand their reach with cheaper but cutting-edge smartphones
While Samsung and Apple continue to steal headlines in this space, several other, smaller smartphone makers are quietly focusing attention on emerging markets with fairly cutting-edge products in the sub $200 price range. In the last couple of months Nokia, Blackberry, ZTE, Huawei have all come to market with sub-$200 devices.
According to several research firms the lower-end of the segment is where all the growth will be as we move deeper into 2014.
"As smartphone sales slow because everyone who wants one, has one, this new level is accelerating growth once again. Today customers can find smartphones priced at $100 or even less. This is a new idea and I think it will be hot," explains technology analyst Jeff Kagan. "This lower price point opens up an entire universe of new customers for smartphone makers and wireless carriers. Not all customers are interested in these lower cost devices of course, but it does widen the market."
One major factor driving this trend is the fact many of the premium smartphone makers are struggling to differentiate products. For example, many analysts criticized the new Samsung Galaxy S5 as only offering incremental improvements on the previous model. Apple's latest offerings have faced similar criticism.
More than 50 percent of the total mobile phones sold last year were smartphones, the first time that has ever happened. The worldwide smartphone market shipped one billion units for the first time in 2013, according to the International Data Corporation (IDC). Smartphone vendors shipped a total of 1,004.2 million smartphones worldwide in 2013, up 38.4 percent from the 725.3 million units in 2012.
