IDC: Smartphone Demand To 'Slow From A Boil To A Simmer' Through 2018

According to International Data Corporation (IDC), worldwide smartphone shipments will reach nearly 1.3 billion units in 2014, marking a 26.3 percent surge over 2013's growth figures. Looking forward to 2015, IDC expects 1.4 billion smartphones to be shipped worldwide, marking a 12.2 percent year-over-year improvement.

IDC further projects that smartphone shipments will experience a 9.8 percent compounded annual growth rate through 2018, reaching 1.9 billion units at that time.

Smartphones are expected to have an average selling price of $297 worldwide in 2014 and is expected to drop to $241 by 2018, according to IDC estimates.

Emerging markets will see smartphone prices drop to $102 by 2018 from $135 in 2014. Meanwhile, mature markets are unlikely to see significant price changes over the coming years.

Android devices are projected to control 80 percent of global smartphones shipped and 61 percent of total smartphone revenue, based on IDC estimates. On the other hand, iOS devices will represent 13 percent of volumes and 34 percent of revenues.

Apple Inc.'s AAPL "approach with premium pricing ensures a growing portion of overall revenues despite its declining market share," IDC's Ramon Llamas said in a statement. "Meanwhile, Android's multi-faceted approach – with forked versions and low-cost Android One strategy – will produce mixed results, yet it allows deeper penetration into emerging markets. That can lead to additional pressure on its vendor partners, who will need to seek greater differentiation in terms of devices and experiences in the hyper-competitive smartphone market."