IDC: Apple's high ASP more than double others, keeps it below 15 percent

Summary:Apple's iPhone is a fantastic device and it sells well in areas like North America where consumers can afford the high average selling price. Smartphone growth is slowing and long term forecasts are getting more reliable.

Forecasts for the smartphone industry used to add little value as things changed quickly, however over the last couple of years the market has settled down and the changes have not been drastic at all. IDC just issued their four year forecast that appears reasonable given the current state of affairs.

IDC report: Apple's high ASP more than double others, keeps it below 15 percent

We have seen significant growth in smartphone sales, but IDC forecasts that this growth will slow to single digits in North America by 2017. That makes sense given the saturation of smartphones with a reported 200 million smartphones in active use on this continent.

Android will continue its domination with worldwide share expected to stay in the upper 70 percent. iOS is predicted to stay pretty consistent at mid to upper 14 percent, likely due to their high ASP and fact that other smartphone platforms offer equally compelling experiences. Windows Phone is predicted to have the most growth from 3.9 percent to 7 percent by 2018 and IDC considered the new Windows Phone partners here too. BlackBerry is forecast to continue falling from 1 percent (2014) to 0.3 percent by 2018.

IDCASP2014

We know that Apple's iPhone is the most expensive smartphone available, but I was a bit shocked how its average selling price (ASP) is at least double, and in some cases almost triple, that of competing smartphone platforms. The iPhone leads in ASP at $649 in 2014 with BlackBerry at $339, Windows Phone at $265, and Android at $247. US consumers buy the iPhone thinking it is just $100 or $200 because they have bought into the subsidy model, but the real cost is much higher.</p

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Topics: Mobility, Android, BlackBerry, iPhone, Smartphones, Windows Phone

About

Matthew Miller started using a mobile devices in 1997 and has been writing news, reviews, and opinion pieces ever since. He is a co-host with GigaOM's Kevin Tofel on the MobileTechRoundup podcast and an author of three Wiley Companion series books. Matthew started using mobile devices with a US Robotics Pilot 1000 and has owned over 200 d... Full Bio

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