ISLAMABAD (APP) – The dropping prices of smartphones in Pakistan and elsewhere is likely to boost adoption rate of smartphones as compared to featured phones to 51 per cent by 2020.
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Current smartphone adoption rate of 15 percent in Pakistan is likely to grow to over 300 percent to reach 51 percent within next five years as primary barrier for adoption of smartphones, i.e. prices are coming down to below 100 $ dollars, a report entitled “Building Digital Societies in Asia” published by GSMA said.
The report said average price of smartphones dropped down to 200 $ in 2014, down from 329 $ in 2008. Further down the line, smartphones below 100 $ are now becoming a reality, however, there is a clear need for more vendors manufacturing these low prices phones to become more common in growth markets like Pakistan.
The report further said under 100 $ smartphones currently account for over 40 % of total smartphones in India and since below 100 $ smartphones have started to surface in Pakistan, the smartphone adoption rate will grow incrementally to around 80 million by year 2020.
Report said that ultra-low-end smartphones are of particular relevance in emerging markets because handset subsidy from operators – such as they offer in various developed markets – has comparatively low application in developing markets, making it hard for masses to adopt smartphones.
Moreover, since low-income segment dominates in developing markets, these ultra-low end smartphone becomes handy and only way for them to adopt smartphones and ultimately the internet.