Global shipments of smartphones to reach 1 bln

Global shipments of smartphones are expected to reach around 1 billion handsets by 2016, fueled by a surge in consumer demand, a global telecom consulting firm said Tuesday. Britain-based Juniper Research said the increase represents a 230 percent rise from shipments tallied for 2010, with low-priced smartphones under US$150 to be the main contributor to the spike in future shipments and sales. It also predicted that the worldwide smartphone market will be divided between premium smartphones, like those made by Samsung Electronics Co. and Apple Inc., and low-end products made by new companies. The research firm said modestly priced phones will be needed because people in many emerging economies cannot afford expensive premium phones and added that the "open" Android operating systems may be well suited for inexpensive smartphones. Juniper said that demand for smartphones will rise equally in both industrialized and emerging economies around the world. The research and consulting firm, meanwhile, expected markets for low-end smartphones to emerge starting in the later part of this year with companies such as Samsung, Apple and LG Electronics Inc. preparing to release more affordable products. Related to the prediction, local industry sources said that the introduction of affordable smartphones will put pressure on manufacturers of conventional mobile phones that could lead to lower prices.