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The smartphone price crash is about to wreck two major vendors

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Smartphone Price Drop Implications Analysis
The latest IDC estimates of smartphone price decline give us a pretty good explanation to why most phone vendors had such lousy spring quarters. The global average sales price (ASP) tumble to $375 today from $450 in early 2012 was simply too rapid to manage. The industry was lulled into complacency in 2011 and 2012, when smartphone pricing held relatively stable as the high-end iPhone and Galaxy devices gained share from cheaper models. Now budget models are the hottest niche in the industry and strategic planners of most leading vendors probably missed this sudden switch completely.

 

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