BRIC countries to buy $206 bn worth of Smart Devices by 2014 [Report]

Emerging economies including India, Brazil, China and Russia are expected to generate shipments of 662 million units of smart connected devices (PCs, tablets, and smartphones), with a shipment value of more than $206 billion by 2014, according to a new report by IDC.

This rising trend shows that the demand for smart connected devices is quickly shifting from developed to emerging markets.

The report by IDC’s Worldwide Quarterly Smart Connected Device Tracker also said that, emerging markets are expected to grow at a compound annual growth rate (cagr) of 17% over the 2012-2017 forecast period. This when compared to the 7% cagr expected in developed markets show emerging countries as the next place to be for global brands.

IDC market forecast

Globally the PC market is also beginning to dwindle slowly, in 2014 only 300 million units are expected to be shipped with a shipment value of less than $200 billion. This when compared to the 1.4 billion units of smartphones and tablets,that are expected to be shipped globally in 2014, with a value of around $500 billion, show a resurging trend of mobile devices as the next big device to be looking on to.

With the rise in global demand for smartphone and tablet devices, the average selling price (ASP) of these devices are also seeing a steady decrease. Globally tablet ASPs plummeted -19% year over year in 2012 to $426, down from $525 in 2011. Also smartphone ASPs fell -8.2% year over year to $407 in 2012, down from $443 in 2011. With a rising trend of portability and affordability being the main factors when choosing a device, looks like this decreasing ASP trend is set to continue.In emerging countries sub-$300 smartphones and sub-$350 tablets are expected to drive huge shipments in the coming future.

Mobile messaging, gaming, social networking, and social commerce applications, including mobile check-in services are another reason for the rise in smartphone and tablet usage in emerging countries.

Government Push for Smart Devices

Governments active participation in education projects involving involving low cost tablets in countries like India, Thailand, Turkey, and the UAE are will further boost tablet devices in the region.

The sub $35 tablet (Aakash) project, a brainchild of Human Resources Development (HRD) minister Kapil Sibal, was an initiative by the ministry to develop a mobile device that can be utilized by students anywhere. The device was tested and launched. The second and third versions have come out and the fourth version is in the works.

Better and wider 3G/4G deployment is another boost telecom providers are giving the smartphone and tablet market in emerging countries.

According to a recent report Indian 3G subscriber Access 3X More Data Than 2G Users. An average 3G user consumes about 434 MB Data Per Month. This trend shows a rise in usage of smart devices in India. One of the main reasons cited for the increase in 3G usage was the reduction in 3G tariff by telecom companies.

The Chinese and other Asian smartphone and tablet brands that have forayed into the Indian market have been reasonably successful so far in the market, especially with these devices being launched with specs, found in leading brands in the smartphone and tablet domain, at nearly half the price.

With the average user in emerging countries spend more time on mobile devices accessing mobile date, the trend of portable and affordable mobile devices is here to stay.

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