Worldwide smartphone shipments will reach 1.2 billion units...

Worldwide smartphone shipments will reach 1.2 billion units this year, up 23 percent from last year, and reach 1.8 billion units by 2018, said IDC. The industry research firm, in a report (http://bit.ly/1ko36sY), forecast a compound annual growth rate from 2013-2018 of 12.3 percent, driven by a doubling of shipments in emerging markets including India, Indonesia and Russia. China will account for nearly a third of all smartphone shipments in 2018, IDC said. A key to reaching the growth opportunity is “balancing affordability with expectations,” said Ramon Llamas, research manager-IDC mobile phone team. IDC projects the average selling price (ASP) of smartphones to be $314 this year, down 6.3 percent from 2013, and ASP is expected to drop to $267 by 2018. Consumers will expect premium features regardless of falling prices, Llamas said. “Until recently, low cost has equaled poor quality in the smartphone space,” said Ryan Reith, program director-IDC’s Worldwide Quarterly Mobile Phone Tracker. In the competitive high-end segment, vendors including Motorola Mobility “are trying to skate to where the puck is going by offering extremely affordable devices like the Moto E, which offer a ‘good enough’ experience that will suit the needs of many,” Reith said. Components used in high-end smartphone designs from two to three years earlier “are still sufficient in many aspects,” Reith said, allowing vendors to offer lower-cost solutions. Among operating systems, Android will remain dominant, with market share of 80.2 percent this year, IDC said. Over the forecast period, Android will lose minimal share to Windows Phone, it said.