Pricing is Key Roadblock to Smartphone Adoption

Pricing is Key Roadblock to Smartphone AdoptionWhile it's not exactly rocket science, a new study has confirmed that worldwide smartphone adoption is linked to two major price factors: cost of the phone and cost of services.

The study, by mobile ad firm Adzookie, compares smartphone penetration in 13 countries, the average cost of an iPhone in each country, the average yearly income in each country, and the cost of a smartphone as a percentage of yearly income.

Countries like Canada, Italy, the U.K., and U.S., whose smartphone penetration is around 30 percent, boast smartphone costs as less than 2 percent of yearly income. Singapore, in particular, has a smartphone penetration rate of 40 percent. Adzookie explains it like this: "A contributing factor to the adoption of smartphones includes affordable subscription plans. Consumers in Singapore pay as little as $40 USD a month for voice, SMS, and 12 GB of mobile data."

Conversely, in a country like India, where the average yearly income is barely above $1000, and an iPhone costs $600 (which accounts for 56% of yearly average income), the smartphone penetration is a paltry 5 percent.

The study itself looks a bit paltry and un-scientific, but Wayne Rash over at eweek claims it compiles data from the UN, Nielsen, and ComScore. Rash also expounds on the data as evidence that the iPhone is over-priced and that low-cost Android devices are the key to further smartphone adoption worldwide. Again -- not exactly rocket science.

Source: DailyTech

Tags: research

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