Processors with more processing power will "deform" high-end smartphones into consoles, but slower growth next year will force smartphone makers to focus more on improving low-end products. Market research firm IDC predicts that smartphone shipments will grow 39% this year, surpassing 1 billion for the first time. Smartphone shipments are expected to be only about 20% next year, so vendors must push harder to upgrade users. Here are some trends in the smartphone market in 2014:
Higher display resolution
One of the biggest trends in the smartphone market over the past two years has been the larger display size and higher resolution, and this trend has not faded. For example, LG's display technology division has developed a 5.5-inch display for a new generation of smartphones with a resolution of 2560 pixels x 1440 pixels and a pixel density of 538 pixels per inch. The pixel density of the HTC One 4.7-inch display is At 468 pixels per inch, the Samsung Galaxy S4 5-inch display has a pixel density of 441 pixels.
When LG announced its new display earlier this year, it said that higher resolutions allow users to browse the full PC version of the web. Whether other vendors will follow up remains to be seen, and media reports say that Samsung is developing displays with the same resolution and smaller size.
LTE accelerates popularity
Although LTE is still in the early stages of development in many places, operators have begun testing a technology called carrier aggregation that provides faster download speeds and allocates more resources to some users. British mobile operator EE is testing carrier aggregation technology to achieve a network speed of 300 MBPs; Vodafone, TelefA3nica and SK Telecom are testing technologies with a network speed of up to 225 Mbps.
EE is expected to launch its first 300Mbps commercial router in the middle of next year, and smartphones supporting this technology will be available in the second half of next year.
The new LTE chip will lay the foundation for cheap 4G handsets.
Game machine
Smartphones have greatly reduced the appeal of consoles such as the Sony PSP and the Nintendo 3DS, and have had a profound impact on the gaming arena. As smartphone processing power becomes stronger next year, vendors such as Samsung and Apple will try to capture a larger game market.
Last month, Qualcomm announced the Snapdragon 805 processor with integrated Adreno 420 GPU (graphics processing unit), graphics processing and computing power increased by 40% over the previous generation. According to Qualcomm, the Adreno 420 GPU can achieve high-quality gaming machine quality game images on "Ultra HD or 4K displays, and most consumers do not have Ultra HD or 4K displays in their homes."
Qualcomm currently only supplies Snapdragon 805 processors in small quantities – with four cores with a clock frequency of 2.5 GHz. It is expected that the Snapdragon 805 smartphone will be available for sale in the first half of next year.
CCS Insight expects that at least one vendor will launch a smartphone product that can be transformed into a PC-like device next year. The new product will be configured with a second interface, and Ubuntu is developing related technologies. CCS Insight recently published a report saying that despite the media attention, new products can only achieve limited success.
Focus on low-end products
Higher resolutions, faster network speeds and processors are enough to attract some users to buy high-end smartphones, but the high-end market is saturated. IDC said that the main driver for the growth of the smartphone market in the next few years will be the price decline.
IDC recently reported that the average selling price of smartphones this year will fall by about 13% from last year's $387 to $337. This trend will continue and will fall further to $265 in 2017. This means that vendors need to find a balance between performance, price and profitability. For users, this means that their spending will receive higher returns, and the difference between high-end and low-cost models will shrink.
Motorola's MOTO G has set a benchmark for smartphones that cost less than $200. Moto G is equipped with a quad-core processor and a 4.5-inch high-definition display, which makes Samsung, LG and other manufacturers face pressure to launch better products.
Moto G will have some success. Magnus Ahlqvist, vice president of Motorola Europe, Middle East and Africa, said that despite the short time to market, Moto G has had a big impact.
One feature that Moto G does not support is LTE (Long Term Evolution) technology. LTE technology is more expensive, and vendors will not be available on low-end phones for the time being. However, this situation may change as competition in the chip market intensifies. MediaTek plans to release the first LTE-enabled chipset product, which will help LTE smartphone bare metal prices fall below $200 next year.
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