GSMA: Two In Three Mobile Devices Will Be Smartphones By 2020

The distinction between smartphone and mobile phone is set to decrease even further, with the GSMA claiming that the former will account for two thirds of the world’s mobile market by 2020.

The organisation says the total number of smartphone connections will reach six billion within the next six years, fuelled by low cost handsets, demand in developing markets and the availability of mobile broadband.

The remaining three billion connections will include basic mobile phones and feature phones as well as data terminals such as tablets, dongles and routers. It does not include M2M connections however, which constitute a separate category.

Smartphone ownership

“The smartphone has sparked a wave of global innovation that has brought new services to millions and efficiencies to businesses of every type,” said Hyunmi Yang, chief strategy officer at the GSMA, adding there will be another one billion connections within the next 18 months alone.

“In the hands of consumers, these devices are improving living standards and changing lives, especially in developing markets, while contributing to growing economies by stimulating entrepreneurship.”

Smartphone ownership in developing countries overtook that of developed nations in 2011, a trend that is expected to continue as many countries reach saturation point. China currently has 629.2 million connections, ahead of the USA with 196.8 million and Brazil with 141.8 million.

Developing world

The GSMA says cheaper handsets, included operator branded ones, will increase smartphone penetration in Asia, Africa and Latin America, as will the ongoing rollout of 4G services. However the industry body warns that this is dependent on governments making sure enough spectrum is made available for LTE and not taxing smartphones excessively.

The developing world is becoming an increasingly intense battleground for smartphone manufacturers looking to maintain levels of growth as traditional markets saturate, however local firms such as Xiaomi have enjoyed great success in their homelands.

For many people in these countries, the lack of fixed broadband means smartphones will be the main way of accessing the Internet. Android devices are immensely popular, but Mozilla has launched its own web-based operating system Firefox OS in a bid to reduce the cost of developing a smartphone and creating apps so more people can get online.

Earlier this year it produced a reference design for a $20 smartphone, with a unit based on this released in India in August.

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