Smartphone center of gravity shifts to Asia?

Posted on July 25, 2013  /  0 Comments

Telecom operators know exactly how many smartphones are in use in their networks. Therefore, Wireless Intelligence will know. But Reuters appears to be relying on ITU estimates.

This year, the number of mobile Internet users in the developing world will overtake those in the developed world for the first time – growing 27 times since 2007, compared to the developed world’s fourfold growth, according to estimates from the International Telecommunications Union (ITU).

“The centre of gravity in the mobile ecosystem is likely to shift from the United States and Western Europe toward Asia,” Mary Ellen Gordon, director at mobile advertiser Flurry Inc, said in an emailed interview.

That shift is a challenge to profit margins at the likes of Apple Inc and Samsung Electronics, which together sell half of the world’s smartphones. Both companies announce quarterly results this week.

Samsung has indicated its second-quarter operating profit will fall short of estimates as demand for high-end smartphones slows. Apple is also exploring cheaper iPhone models that come in different colours to tap the mass segment, sources have said.

But the story is worth a read. Lots of predictions about sub USD 50 smartphones.

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