Smartphone prices in Western Europe to drop US$100 by 2018

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Smartphone prices in Western Europe to drop US$100 by 2018

Startup players will continue to launch devices with attractive specs at competitive prices, says IDC.

December 18, 2014

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Startup players will continue to launch devices with attractive specs at competitive prices, says IDC.

In a recent report, IDC has projected that smartphones are still a very competitive market in Europe especially at the low end. Currently, smartphones cost an average of US$433 in Western Europe, down 5 percent from the year before. While that represents a small decline mainly made up of new and low-cost smartphones flooding the market, IDC says that downward price trend will accelerate, with smartphone ASP dropping over US$100 by 2018. "Startup players are launching devices with attractive specs at very competitive prices, and users are becoming more open to new brands when they understand their value proposition," said Susana Santos, Research Analyst, IDC WE Mobile Devices.

Samsung remains the top smartphone vendor in Western Europe in the smartphone space, despite losing 16.7 percent in volume and value YoY. Apple remained in second place and increased its market share to 17.1 percent. Notably, former niche player Wiko jumped to 6th position in the top smartphone vendors' ranking, reaching 3.2 percent market share. The last is of significant interest to makers and buyers of white box smartphones that want to establish a brand – it is still possible and still likely, especially if Samsung’s struggles continue.

On the other hand, tablets in Europe have not grown significantly in the quarter. "The tablet market reached a plateau, which reflects some maturity for this technology, only four years after the popular introduction of the iPad," said Jorge Ferreira, research analyst, IDC EMEA Personal Computing. Nevertheless, there is some good news when it comes to tablets, or at least tablet hybrids. 2-in-1s, tablets that also function as a PC (or vice versa), have had significant growth, 46.4 percent year-over-year. While this is to be expected for a new and growing market, it does remain to be seen if the 2-in-1 computer/tablet market will mimic the cyclical patterns of tablets and PCs; that is, a new purchase every 3-5 years or so as opposed to smartphones, which are typically purchased in a 1-2 year cycle.

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