STAMFORD, Conn.—Consumers worldwide are expected to spend 4.3% more this year on mobile phones, according to a new report that indicates many of the additional dollars will go toward premium devices.
And as CUToday.info reported here, the kind of device a member uses can also be a strong indicator of financial behavior.
The new report from Gartner indicates that consumer spending on mobile devices will reach $399.5 billion this year.
“Caught in this phone upgrade cycle, buyers will spend over $423 billion by 2019, predicts the research firm. Last year, Chinese vendors Huawei, Oppo and BBK helped raise the average selling price of basic phones by 13.5%. This year, they're expected to increase prices by another four% on average,” reported Datamation.
"The increased ASP (average selling price) for mobile phones was driven by users across the board. They are replacing their basic phones with better-quality and more feature-rich basic phones, due to improved product portfolios from rising vendors such as Huawei and Oppo," observed Gartner research vice president Annette Zimmermann in a statement. "In emerging markets, the majority of users are upgrading to better basic phones as the leap to premium phones remains out of reach for most."
The arrival of some highly anticipated handsets later this year will also boost the premium phone market, predicted Zimmerman.