The falling prices of smartphones in Pakistan and elsewhere will boost adoption rate of smartphones as compared to feature phones to 51 per cent by 2020, a report published by GSM Association (GSMA) claimed.
Current smartphone adoption rate of 15 per cent in Pakistan is likely to grow by over 300 per cent to reach 51 per cent within the next five years as primary barrier for adoption of smartphones, i.e. prices, is changing and they are coming down to below $100, according to a report titled Building Digital Societies in Asia.
The report said that average price of smartphones dropped down to $200 in 2014, down from $329 in 2008. Now, smartphones below $100 are also becoming a reality. However, there is a clear need for more vendors manufacturing these low prices phones in the country.
The report further said that under-$100 smartphones currently account for over 40 % of total smartphones in India and since these low priced smartphones have started to surface in Pakistan, smartphone adoption rate will grow incrementally to around 80 million by the year 2020.
The report said that ultra-low-end smartphones are of particular relevance in emerging markets because handset subsidy from operators like the one they offer in various developed markets has comparatively low application in developing markets, making it hard for masses to adopt smartphones.
Moreover, since the low-income segment dominates in the developing markets, these ultra-low-end smartphone become the only way for them to adopt smartphones and ultimately the Internet.