Low Cost Handsets, Feature Phones and Entry Level Smartphone Report 2011-2016

• Publication date: December 2011

Report Details Is the Feature Phone Still Relevant? Visiongain believes that not only is the feature phone still relevant but in the next five years it will become even more essential as an essential device in handset manufacturers portfolios. Over 70% of handsets shipped in 2011 were feature phones and as emerging economies come to fruition we believe the popularity of these devices will remain stable. We discuss the two ...

Report Details
Is the Feature Phone Still Relevant?

Visiongain believes that not only is the feature phone still relevant but in the next five years it will become even more essential as an essential device in handset manufacturers portfolios. Over 70% of handsets shipped in 2011 were feature phones and as emerging economies come to fruition we believe the popularity of these devices will remain stable.

We discuss the two main segments of feature phones that will come to prominence in under developed markets, the low cost and ultra low cost handsets. The Smartphone continues to grow in popularity in mature markets, but we believe that the entry level Smartphone will follow a similar path in emerging economies. New market entrants and the advent of Android have combined to create cheaper than ever Smartphones. We believe these devices and ecosystem players are poised to gain significant market share in areas where subscriber penetration rates remain low. 

Key Strategies

For ecosystem members wishing to devise a winning strategy to capitalise on new opportunities, this report details key offerings from major players and analyses the specific local and regional needs of key areas. Comparing these strategies reveals the best route to devising an unbeatable offering.

Key factors in low and ultra low cost offerings are margins and the BOM versus ASP. A detailed breakdown of these issues combined with forecasts of how the ASP for each handset type will decline over the forecast period will allow ecosystem members to position themselves effectively in order to gain significant market share. 

What is Different about this Report?

We conducted an independent and unbiased non-vendor affiliated assessment of the feature phone and entry level Smartphone market. We surveyed and interviewed several key industry players to gain an in-depth view of the market. We believe such a research will help you in assessing the market potential and in designing feature phone and entry level Smartphone strategies. 

Some of the key points researched and forecasted include:
• How will the low cost, feature phone and entry level Smartphone market will evolve by 2016?
• What are the low cost, feature phones and entry level Smartphone related challenges facing MNOs?
• What is the impact of Android's growth on feature phone adoption by mass market?
• What are the key entertainment applications necessary to drive adoption of feature phones?
• How can operators monetise these opportunities?
• What are the partnership opportunities for handset subsidies in the prepaid and post paid markets?
• How will cloud computing impact on the emerging economies market?

Who needs to read this report?

• Operators - While mature markets are reach saturation point, emerging economies represent a vast untapped potential for huge subscriber bases. Regardless of region, operators stand to widen revenues by providing a cost effective service to potential subscribers.

• Handset manufacturers - Smartphones may be the future for developed nations but the fact remains the feature phones still outnumber Smartphones by 4:1 on a global scale. This report details the segmentation and intelligence that will define a flawless strategy to gain subscribers in emerging economies.

Increase your understanding of this exciting market by ordering: Low Cost Handsets, Feature Phones and Entry Level Smartphone Report 2011-2016

Visiongain is a trading partner with the US Federal Government
CCR Ref number: KD4R6 
 

Global Phones And Pda Industry

Table of Contents

Executive Summary 
E1 Feature Phone Sales Will Continue to Rise
E2 Key Markets in Emerging Economies
E3 Slow Uptake for Smartphones 
E4 Insufficient Infrastructure - Skipping the PC Revolution 
E5. Points Emerged from this Research

1. Introduction
1.1 Defining Low Cost Handsets
1.2 Defining Ultra Low Cost Handsets
1.3 Defining Emerging Markets 
1.4 Defining the Entry level Smartphone
1.4.1 Lack of 3G Infrastructure Leading to Slow Smartphone Adoption Rates 
1.4.2 Impact of ITU Regulations on Broadband Access
1.4.3 Impact of Mobile Broadband on BRIC Nations
1.5 Importance of Low Cost Mobile Internet 
1.6 Global Penetration of Feature Phones
1.7 Aim of the Report
1.8 Questions Answered by the Report
1.9 Structure of the Report
1.10 Methodology

2. Key Ecosystem Players - Offerings and Strategies
2.1 The Entry Level Handset Space
2.2 Operators
2.2.1 Vodafone
2.2.1.1 Vodafone Partnership Strategies
2.2.1.2 Vodafone Own Brand Handsets 
2.2.1.3 Analysis of Vodafone Own Brand Handset Features
2.2.1.4 Pre-Pay Balance Indicator
2.2.1.5 M-PESA
2.2.1.6 Regional Adoption of M-PESA
2.2.1.7 Analysis of Vodafone's use of M-PESA
2.2.1.8 Vodafone Using Opera Mini to Combat Data Restrictions and Network Capacity Issues
2.2.1.9 Summary Analysis of Vodafone's Own Brand Handset Offering
2.3 OEMs
2.3.1 Nokia Offerings and Strategies
2.3.1.1 Is Nokia's Market Share in Terminal Decline?
2.3.1.2 Nokia Handset Offerings
2.3.1.3 Nokia Life Tools (NLT)
2.3.1.4 Analysis of Nokia Life Tools
2.3.1.5 Nokia Money
2.3.1.6 Nokia Money - Benefits and Analysis
2.3.1.7 Nokia to Create New Feature Phone Operating System?
2.3.1.8 Nokia's Entry Level Smartphone Offering
2.3.1.9 Analysis of Nokia's Entry Level Smartphone Offerings
2.3.2 Huawei 
2.3.2.1 Huawei's Strategy
2.3.2.2 Analysis of Huawei's Reverse Innovation Strategy
2.3.2.3 Huawei's Android Based Handset Offerings
2.3.2.4 Huawei Optimus / U8180
2.3.2.5 Cloud Based Feature Phones for Indian Market 
2.3.2.6 3G Feature Phones 
2.3.2.7 Huawei's 3G Feature Phone Strategy 
2.3.3 ZTE Offerings and Strategies
2.3.3.1 Analysis of ZTE's Shifting Strategy
2.3.4 Micromax Offerings and Strategies
2.3.4.1 Micromax Rural Subscriber Strategy
2.3.4.2 Micromax Segmentation Strategies
2.3.4.3 Analysis of Micromax Strategies
2.3.5 Gentag to Offer Low Cost NFC/RFID Handset 
2.3.5.1 Analysis of NFC Handsets in Emerging Markets
2.3.6 Motorola Offerings and Strategies
2.3.6.1 Motorola Feature Phone Offerings 
2.3.6.2 Targeting the Emerging Economies with Feature Phones
2.3.6.3 Google Acquisition and Potential Transformation of Strategies
2.3.6.4 Motorola's Entry level Smartphone Offering 
2.3.6.5 Analysis of Motorola's Offerings
2.3.7 MediaTek Strategy and Offerings
2.3.7.1 MediaTek Leveraging Facebook for Emerging Economies Market Share
2.3.7.1.1 Will Facebook Capable Feature Phones be a Game Changer?
2.3.7.2 Single Chip Solutions to Further Strengthen MediaTek's Position
2.3.7.3 Analysis of MediaTek's Offerings
2.4 Comparative Summary Analysis of All Key Offerings

3. Regional Markets and Operator Involvement Analysis
3.1 BRIC Nations
3.1.1Brazil
3.1.1.1 Latin America to Reap Revenues from Mobile Finance Services
3.1.2 Russia
3.1.3 India
3.1.3.1 Indian Operators to Partner for 3G Roaming 
3.1.3.2 Current Handset Vendor Market Share India
3.1.4 China
3.1.4.1 How Operators Tackle Saturated Markets
3.1.4.2 Smartphone Sales: China vs. United States 
3.1.4.3 Further Opportunities in Asia Pacific
3.1.4.3.1 Thailand
3.2 Opportunities in the European Market 
3.3 Opportunities in the African Market
3.3.1 France Telecom Orange 
3.3.2 Analysis of France Telecom Orange's Involvement in African Markets

4. Current Emerging Market Trends and Future Evolution
4.1 Effect of Emerging Market Internet Opportunities on Entry Level Smartphone Sales
4.2 Future Handset Requirements and OEM Strategies
4.3 Customer Segmentation Strategies and End User Perspective
4.4 Leveraging Cloud Services for Emerging Economies
4.4.1 Cloud Services in Madagascar
4.4.1.1 Movirtu Cloud Phone
4.4.2 Cloud for Emerging Economy Enterprises 
4.4.2.1 Analysis of Cloud Services Potential Impact on Emerging Economy Enterprises
4.5 Bill of Materials vs. Average Selling Price - How to Maximise Margins
4.5.1 Single Chip Solutions
4.5.2 External Component Costs
4.5.3 Shrinking Designs and Lowering Geometries 
4.5.4 Wholesale ARP and Declining BOM
4.5.5 Analysis of Maximising Margins Strategies
4.5.6 Potential Costs Incurred - Long Term Strategies

5. Forecasts
5.1 Global Low Cost Handset Shipments 2011-2016
5.2 Global Ultra Low Cost Handset Shipments 2011-2016
5.3 Global Entry Level Smartphone Shipments 2011-2016
5.4 Declining Cost of Low Cost Handsets 2011-2016 
5.5 Declining Cost of Ultra Low Cost Handsets 2011-2016 
5.6 Declining Cost of Entry Level Smartphones 2011-2016 
5.7 Declining Costs Summary
5.8 Regional Sales of Smartphones and Feature Phones
5.8.1Smartphone vs. Feature phone sales in Asia Pacific - 2011-2016
5.8.2 Smartphone vs. Feature phone sales in Europe - 2011-2016
5.8.3 Smartphone vs. Feature phone sales in Africa and Middle East - 2011-2016
5.8.4 Smartphone vs. Feature phone sales in North America - 2011-2016
5.8.5 Smartphone vs. Feature phone sales in Latin America - 2011-2016
5.9 Top Global Handset Manufacturers by Market Share (2011-2016)

6. Recommendations and Conclusion
6.1 Customer-Centric Approach
6.2 Regional Segmentation Strategies
6.3 Partnerships with Local Players
6.4 Build Infrastructure
6.5 Conclusion

List of Figures

Figure 1.1: Vodafone 250 Handset
Figure 1.2: Emerging Markets World Map
Figure 2.1: Vodafone Handsets 252, 351 and 455
Figure 2.8: Nokia 100 and 101 Handset models
Figure 2.10: Nokia Life Tools
Figure 2.11: Nokia Money 
Figure 2.15: Nokia Asha Handset Range 
Figure 2.18: Estimated Savings on Civil Engineering Costs
Figure 2.20: Huawei U8180
Figure 2.22: Huawei U8650 and U8510
Figure 2.23: Huawei U5510 and Huawei MediaPad
Figure 2.30: Micromax Marathon Battery Range (2011)
Figure 2.35: Gentag GT-601 Handset
Figure 2.36: Motorola Feature Phone Offerings (2011)
Figure 2.38: Motorola FIRE Handset
Figure 3.18: Mobile Phone Penetration - Europe (Q1 2011)
Figure 3.21: France Telecom-Orange Global Operations (highlighted in orange)

List of Tables

Table 2.2: Specifications of Vodafone Own Brand Handsets
Table 2.5: Vodafone Own Brand Handset Offerings and Analysis
Table 2.9: Specifications of Nokia 100 and 101 Handsets 
Table 2.14: Nokia Money Benefits and Analysis
Table 2.16: Nokia Asha Handset Range Specifications 
Table 2.17: Analysis of Nokia Asha Handset Range
Table 2.21: Huawei U8180 Specifications
Table 2.24: Huawei U5510 Specifications
Table 2.37: Motorola Feature Phone Specifications (2011)
Table 2.38: Summary of Key Handset Offerings
Table 3.1: BRIC Nations Mobile Landscape Summary
Table 3.2: Top Mobile Operators - Brazil (2011)
Table 3.5: Top Mobile Operators - Russia (2011)
Table 3.6: Top Mobile Operators - India (2011)
Table 3.10: Top Mobile Operators - China (2011)
Table 3.11: China Mobile Financial Results 2010-2011
Table 3.12: China Mobile Operational Statistics (2011)
Table 4.5: BOM Cost vs. ASP Based on Unit Sales

List of Charts

Chart 1.3: Mobile only Internet Access by Region (2011)
Chart 1.4: Global Handset Shipment Market Share by Device Type (2010-2011)
Chart 2.3: M-PESA Subscribers - Kenya (2009-2011)
Chart 2.4: Global Mobile Browser Market Share (Q4 2011)
Chart 2.6: Nokia Handset Shipments by Type (Q3 2011)
Chart 2.7: Nokia Handset Market Share (2008-2011)
Chart 2.12: % of Indian Retail Outlets that Accept Credit Card Payments (2011)
Chart 2.13: % of Indian Population with Bank Accounts (2011)
Chart 2.19: Smartphone Market Share by OS (Q3 2011)
Chart 2.25: Huawei Revenues from India (2011)
Chart 2.26: Huawei's Indian Research and Development Involvements (2011)
Chart 2.27: Top 5 global OEMs Market Share (Q3 2011)
Chart 2.28: ZTE Revenues by Region (2010-2011)
Chart 2.29: ZTE Revenue Shares by Sector (2011)
Chart 2.32: % of Bangladesh Population Involved in Fishing (2011)
Chart 2.33: Micromax International vs. Local Revenue Share (2011)
Chart 2.34: Micromax International vs. Local Revenue Share (2016)
Chart 2.39: Comparative Summary Analysis of All Key Offerings 
Chart 3.3: Value of Latin American Mobile Banking (2011-2016)
Chart 3.4: Market Share of Kenyan Operators (2011)
Chart 3.7: Route for Subscribers Accessing Internet - India (2011)
Chart 3.8: Handset Vendor Market Share - India (Q3 2011) 
Chart 3.9: Handset Vendor Market Share - India (2016) 
Chart 3.13: China Mobile 3G Subscriber Penetration (2011)
Chart 3.14: China vs. US Smartphone Market Share by Sales (Q3 2011)
Chart 3.15: Mobile Operator Market Share - Thailand (2011)
Chart 3.16: Mobile Subscribers in Thailand (2011-2016)
Chart 3.17: Broadband Subscribers Thailand (2011-2016)
Chart 3.19: Mobile vs. Fixed Penetration Rates Europe (Q3 2011)
Chart 3.20: Mobile Only Households - Central and Eastern Europe (2010-2016)
Chart 3.22: Pre-Takeover Ownership of Congo Chine Telecom (2011)
Chart 3.23: Mobile Subscriber Penetration in the Democratic Republic of the Congo (2011)
Chart 4.1: Madagascan Mobile Penetration (2011)
Chart 4.2: Enterprise Use of Cloud Services - Asia Pacific (2011) 
Chart 4.3: % of Operator Owned Cloud Solutions for Enterprise (2011)
Chart 4.4: Design Innovation Cost by Vendor (2011)
Chart 5.1: Global Low Cost Handset Shipments (2011-2016)
Chart 5.2: Global Ultra Low Cost Handset Shipments (2011-2016)
Chart 5.3: Global Ultra Low Cost Handset Shipments (2011-2016)
Chart 5.4: Low Cost Phone - Declining price (2011-2016)
Chart 5.5: Ultra Low Cost Phone - Declining price (2011-2016)
Chart 5.6: Entry Level Smartphone - Declining price (2011-2016)
Chart 5.7: Declining prices of all handset types (2011-2016)
Chart 5.8: Smartphone vs. Feature Phone Sales by Region (2011 estimate)
Chart 5.9: Smartphone vs. Feature phone sales in Asia Pacific (2011 - 2016)
Chart 5.10: Smartphone vs. Feature phone sales in Asia Pacific (2011 estimate)
Chart 5.11: Smartphone vs. Feature phone sales in Asia Pacific (2016)
Chart 5.12: Smartphone vs. Feature phone sales in Asia Pacific (2011-2016)
Chart 5.13: Smartphone vs. Feature phone sales in Europe (2011 estimate)
Chart 5.14: Smartphone vs. Feature phone sales in Europe (2011 estimate)
Chart 5.15: Smartphone vs. Feature phone sales in Europe (2011 estimate)
Chart 5.16: Smartphone vs. Feature phone sales in Europe (2011 estimate)
Chart 5.17: Smartphone vs. Feature phone sales in Africa and Middle East (2011 estimate)
Chart 5.18: Smartphone vs. Feature phone sales in Africa and Middle East (2011 estimate)
Chart 5.19: Smartphone vs. Feature phone sales in Africa and Middle East (2011 estimate)
Chart 5.20: Smartphone vs. Feature phone sales in Africa and Middle East (2011 estimate)
Chart 5.21: Smartphone vs. Feature phone sales in North America (2011-2016)
Chart 5.22: Smartphone vs. Feature phone sales in North America (2011 estimate)
Chart 5.23: Smartphone vs. Feature phone sales in North America (2011 - 2016)
Chart 5.24: Smartphone vs. Feature phone sales in North America (2016)
Chart 5.25: Smartphone vs. Feature phone sales in Latin America (2011 estimate)
Chart 5.26: Smartphone vs. Feature phone sales in Latin America (2011 estimate)
Chart 5.27: Smartphone vs. Feature phone sales in Latin America (2011 estimate)
Chart 5.28: Smartphone vs. Feature phone sales in Latin America (2011 estimate)
Chart 5.29: Top Global Handset Manufacturers by Market Share (2011)
Chart 5.30: Top Global Handset Manufacturers by Market Share (2016) 

Companies Listed

Aditya Birla Group
Aircel
AIS (Advanced Info Service) 
Alcatel Lucent
Alfa Group 
Algar
America Movil 
Apollo Hospital 
Apple 
Axiata Group Berhad 
Batelco 
BDNES
Beeline
Bharti Airtel
Bharti Enterprises
BSNL
China Mobile
China Telecom
China Unicom
Claro
CTBC
DTAC
Dynamix Balwas Group
Ericsson
Essar Group 
Etisalat
Gentag
HFCL Infotel 
Huawei Technologies
Idea Cellular
International Telecommunication Union
IPOC International Growth Fund
KT
LG Electronics
Loop Mobile India
Maxis Communications 
MediaTek
Megafon
Micromax
Motorola
Movirtu
MTNL
MTS India
NetFront
New Telephone Company
NEXTEL
NII Holdings
Nokia
NSN
Oi 
Opera
Ping Mobile
PT Telecom 
Reliance 
Research In Motion 
Rostelecom
S Tel
Safaricom
Samsung
Santa Trading Pvt 
Scartel
Sercomtel
Shyam Group 
Singapore Telecommunications 
Sistema
Siva Group 
SkyLink
SMARTS
Sony
Sotel
Sotovaja Svjaz MOTIV
Svyazinvest
Tata Group
Tata Teleservices
Tele2
Tele2 AB
Telecom Italia 
Telefonica 
Telekominvest 
Telenor 
TeliaSonera 
TIM
True Move
Uninor
Unitech Group 
Videocon
Vimpelcom
Vivo
Vodafone
Vodafone Essar
Yota
ZTE