Three drivers behind Asia-Pacific’s explosive smartphone growth

CAMBRIDGE, USA: Smartphone sales in Asia Pacific, having already reached record levels, will continue to grow through 2016 to represent 57 percent of handset sell-through in Asia-Pacific and represent 45 percent of global smartphone sell-through. The growth will be driven primarily by the affordability of devices, social networking apps, and operator incentives, according to a new report from Pyramid Research.

Smartphone Mania Creates Growth Opportunities for Vendors and Operators analyzes the underlying trends driving smartphone sales growth in Asia-Pacific. Declining prices for smartphones and service plans, the rise of smartphone apps and mobile social networking apps, and operator initiatives such as subsidies for smartphones all play a role in the considerable growth that the segment has experienced this year.

In the case studies, Pyramid Research examines the effect of mobile social networks such as Facebook on smartphone penetration, RIM’s role in the burgeoning smartphone market and compare subsidies for iPhones among different providers in Malaysia.

“Pyramid Research expects that smartphone unit sales in Asia-Pacific will grow at a 30 percent CAGR from 2011-2016, while smartphone ASPs will decline at a -10 percent CAGR over the same period,” says Emily Smith, Analyst at Pyramid Research.

Declining ASPs is the most important driver behind the increase in smartphone penetration in emerging AP markets like Indonesia, and it is playing a critical role in developed markets like Japan, as well. Demand for smartphones is also being fueled by apps, particularly those related to social networks and gaming as many people access social networks only over mobile devices.

In addition, subsidies for smartphones and application-specific data plans are important operator initiatives that have enabled a broader group of customers to purchase smartphones and have contributed to the rise in sales. “The increase in smartphone penetration represents a shift in how people in Asia-Pacific interact with their mobile handsets and is a big opportunity for operators, vendors and mobile content creators,” she adds.