Telecom Lead Asia: BRIC countries — China, India, Brazil, and Russia — will consume around 662 million smart connected devices (PCs, tablets, and smartphones) worth around $206 billion in 2014.
On the other hand, developed markets will see shipments of more than 650 million units with the U.S., U.K., and Japan capturing more than 400 million units with a shipment value of $204 billion next year, IDC said on Monday.
IDC says global shipments of smart connected devices are expected to surpass 1.7 billion units by 2014 with roughly 1 billion units delivered to emerging markets.
BRIC countries are expected to surpass the total shipments to developed markets by 2014.
The emerging markets are expected to grow at a compound annual growth rate (CAGR) of 17 percent over the 2012-2017 forecast period, compared to the 7 percent CAGR expected in developed markets.
The smart connected device market will be largely driven by the growing demand for smartphones and tablets in both emerging and developed markets.
Of the 1.7 billion units forecast to be shipped in 2014, more than 1.4 billion units are expected to be smartphones and tablets, representing more than $500 billion in value. PCs, on the other hand, will be a comparatively small market with just over 300 million units shipped and a shipment value of less than $200 billion.
The average selling price (ASP) of smartphone and tablet devices is steadily decreasing.
Tablet ASPs plummeted 19 percent year over year in 2012 to $426, down from $525 in 2011.
Smartphone ASPs fell -8.2 percent year over year to $407 in 2012, down from $443 in 2011.
IDC expects sub-$300 smartphones and sub-$350 tablets to drive huge shipments in 2014 and beyond in emerging telecom markets.
In developed markets, smartphones and tablets will continue to generate higher ASPs of $490 and $370, respectively, in 2014.
According to IDC, another factor fueling the growth of smart connected devices in emerging markets is the increase in the use of different mobile applications, such as mobile messaging, gaming, social networking, and social commerce, including mobile check-in services.
Growing interest from governments, especially in education projects across countries like India, Thailand, Turkey, and the UAE, has also enhanced the prospects of low-cost tablets for students in these regions. For instance, several state governments in India have supplied tablets and PCs to students.
