With dropping prices of smartphones, in Pakistan and elsewhere, adoption rate of smartphones — as compared to feature phones — is expected to reach 51% by 2020, said a report published by GSMA.
Report titled as “Building Digital Societies in Asia” said that current smartphone adoption rate of 15% in Pakistan is likely to grow to over 300% to reach 51% with-in next five years as primary barrier for adoption of smartphones, i.e. prices are coming down to below 100$ dollars.
Report said that 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.
Report said that 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.
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