Consumers want sub $399 smartphones with NFC & biometrics

Juniper Research has published its next report in the Smartphone Evolution Strategies series and has found that consumers want sub $399 smartphone and features like NFC and biometrics

It’s no surprise that Samsung has launched two low cost NFC phones this week, or that Nokia launched three budget NFC phones last week, or even that BlackBerry added yet another low cost NFC phone to their portfolio of smartphone products early last week. According to Juniper Research, global shipments of smartphones are highest in the $151- $399 price range globally. These are unsubsidized prices direct from manufacturers and have seen a massive bump in market representation in the last year.

However, Juniper Research predicts that by 2016 the $151 – $399 price range will take the lion’s share of a 1 billion unit per annum smartphone market. That said, Juniper sees that the most intense competition within the smartphone category exists at the top echelons of devices that cost above $400. This leads the research company to state that the biggest opportunity for OEMs lays in the under $150 zone of smartphones from n0w through to 2016. But price isn’t everything as an increasingly savvy consumer asks for features like NFC, biometrics and 3D on smartphones.

Features like NFC in smartphones

Juniper forecasts that prices for high-end models will fall within the next 5 years and competition reaches fever pitch and that this transition will push many budget smartphones below the $150 threshold which represents a sizable opportunity for smartphone manufacturers. We think this would be especially true in developing nations and would open and extend smartphone markets that have not existed until recently. Juniper feels that the standard smartphone and premium smartphone market will remain robust because of features like NFC, 3D and biometrics.

We feel that NFC as a growth factor is a foregone conclusion and biometrics is an extension of that. If asked to guess which other technologies would become big over the next 5 years, we would have to say (1) green chip technologies that allow you to manage your home’s energy usage and functions remotely, and (2) more tie-ins with consumer electronics as the world continues to converge its devices. From what we have seen, wireless charging and self charging capabilities will also be major features that consumers will invest in as well as the standard bumps in component specifications.

The ultimate goal is that our mobile devices replace our PCs and Macs and storage will be replaces with cloud storage systems for files and entertainment. NFC is only the beginning of the coming revolution of contactless technologies, but it is probably the most important step that consumer electronics and mobile devices will take before growing beyond phones. Juniper Research predicts the new category of smart devices (NFC tablets, non-phone electronics) will also see a bump within the next 5 years and take their slice of the market and we tend to agree.

The research was put together after an analysis took place on 118 smartphones that have recently launched by leading smartphone manufacturers as well as in-depth recommendations from vendors, mobile network operators, application developers and investors. If you want to learn more about the research concerning prices of smartphones and features like NFC, head over to Juniper Research by hitting the link here.