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SMARTPHONE SLOW DOWN: Global smartphone shipments growth is expected to slow down to single digits in 2017 and beyond, according to IDC, which just released a new smartphone shipments forecast. Over the four years between 2014 and 2018, IDC estimates global shipments will increase at an average annual rate of 11.4%, with growth curtailing toward the end of that period. In 2017, annual growth will shrink to just 8.3% and only 6.2% growth is expected in 2018. IDC also estimates that the average selling price (ASP) of smartphones will dip 5% per year on average between 2014 and 2018, to $260. (IDC)
We think IDC's forecast for ASP is a bit conservative. In our latest smartphone market update, we forecast smartphone ASP would fall nearly $100 more than what IDC estimates, to $165 in 2018. With several low-budget phones appearing at this week's Mobile World Congress, we stand by our estimates and, in fact, expect the average smartphone price to fall steeply soon. Nevertheless, our estimates for shipments are almost in line with that of IDC, and point to shipments growth descending into single digits just one year later, in 2018. Though there is still plenty of ground to cover in emerging markets, descending handset prices will influence rapid adoption, creating an eventual slowdown in growth at the latter end of the next five years.
QUOTE OF THE DAY: "Right now, for the Nokia X family, we’ve got hundreds of thousands of apps available in the Nokia Store and in third-party stores. The Android ecosystem being what it is, there are lots of places for consumers to get all the apps they want."— Amit Patel, vice president of developer relations at Nokia, on the state of the Nokia X platform app ecosystem. Nokia X OS is Nokia's forked version of Android that is expected to hit the market in the second quarter. (Nokia)
KINDLE FIRE IN CHINA: Amazon has officially launched its Kindle Fire HDX tablet in China. It will retail for about $279. Google services are banned in China, and this gives Amazon a competitive advantage in the country over other Android tablet makers like Samsung. Its app ecosystem is a fully forked version of Android that is devoid of any Google services. Should the device sell well in China, it could be a boon for Amazon's other revenue categories, like content and e-commerce, in the Chinese market. (The Next Web)
GOOGLE PROJECT ARA: Google announced it will hold a developers conference in April that focuses on its Project Ara modular smartphone. Project Ara is a smartphone project that envisions a device loaded with interchangeable parts that can be tailored to a user's liking. For example, a user can swap the camera module for better battery life. The developers conference will guide developers on ways to build Ara hardware modules. (TechCrunch)
LINE VOICE CALLS: Popular messaging app LINE is launching a new voice call feature in a number of markets, including Japan and the U.S. LINE will make voice calls available to users on 30-day plans priced at roughly 6.5 yen (6 cents) per minute per call. Because this is a pay-as-you-go plan, LINE will not be competing with Viber, WhatsApp, and other messaging services that have launched free, Internet-powered voice calls, but instead will put it in a category with Skype and Google Hangouts. (Engadget)
ALL-IN-ONE SMART HOME: Savant is a high-end home automation company that provides a Linux-based home server that creates a central hub for homeowners to control any and all home fixtures like lighting, sound, and temperature. Currently, the entry-level Savant system is priced at $1,599. That's pricey, but Savant gives consumers an easy one-and-done system to connect their entire home, rather than installing various smart thermostats, appliances, and whatever else. A drop in price could make systems like Savant serious competitors to other smart home electronics makers. (GigaOm)
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