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1 in 4 phones will be priced below USD20

January 24, 2007
A study published by ABI research is suggesting that 1 in 4 handsets sold globaly will be priced below $20 by 2011. Looking at the market statistics on gsmExchange, we can see the sub-20$ phones will become available by the end of 2008.

Of the 180000 phones offered/requested on a daily basis, the price of the entry level phones has steadily declined from an average of US$ 42 at the beginning of 2006 to just below US$ 32 last week. As reported before, Motorola predicts that even US$ 15 phones are achievable in 2008.

On the other hand, the tremendous subscriber growth in developing markets will drive the demand for these Ultra Low Cost Handsets as they are called. India in particular is experiencing explosive growth, and we should see continued growth in China as well as the rest of Asia and Africa.

gsmExchange is launching GSM Price Watch; this service is targeted towards industry players who need to keep a close eye on what is happening in the global handset marketplace. As the busiest trading platform in the world, we can provide the most accurate data on pricing information and developing market trends around the globe. The service features a monthly highly detailed report including prices, supply & demand figures, trends, on a global and regional basis. Plus, subscribers to this service receive a weekly brief update to keep on top of developments.

Comments

the used market will still thrive, i think... vanity will not go away and there will still be consumers willing to show off a higher end phone and nobody will know they bought it used or refurbed at a discounted price.

Anonymous @ 10:33 GMT, Jan 29

just a thought....what will the sub $20 phone do to the refurb and used market i wonder?

Anonymous @ 17:05 GMT, Jan 25

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