Smartphone Prices Dropping

By: Angela Soric

There has been a lot of hype surrounding the Smartphone and the tremendous capabilities that surface due to growing technology. When you think these devices can’t get more popular- declining prices prove to make them even more desirable.

A study from ABI Research reports that Smartphone prices are falling, with 27 percent of Smartphones coming in at under $200, as compared to just 7 percent of Smartphones in that price range in 2007.

By 2014, ABI Research expects that 45 percent of Smartphones shipped that year will be priced below $200.

In the third quarter of 2009, North America and Asia-Pacific helped to spearhead a recovery. In North America, the strong enthusiasm for Smartphones was a primary driver. In Asia-Pacific, recovery in the local economies has greatly increased the interest in upgrades. [BusinessWire]

“Manufacturers see consumers increasingly demanding Smartphones, because of their better understanding of the value that a Smartphone delivers,” said Kevin Burden, with ABI. “Nearly all consumers used to choose handsets based on the physical characteristics of the hardware, not the software inside. The iPhone changed that: more users are now shopping for their handset based on the operating system and software, which is something once thought to be very unlikely.”

Posted Friday, October 30th, 2009 under Mobile Commerce, Mobile retail, Smartphone, iPhone.