Sub-$400 smartphones to make up the bulk of global smartphone shipments in 2020:IDC

A breakup of the results shows that under $400 devices accounted for 85 percent of smartphone sales in most Asian Pacific countries, Central and Eastern Europe, Latin America, the Middle East, and Africa.

Market share of under $200 devices increased 10 percent year on year to 27 percent in the US during the last quarter.

The mid-to-high segment, which comprises smartphones with a price tag between $400 and $600, grew 4 percent in Q2 2020, which earned it a share of 11.6 percent.

The category grew the most in China with an 8 percent increase in market share to 21 percent during the second quarter of the year. 

Samsung, Huawei, Xiaomi, OPPO, and Vivo dominated the segment in Q2. Apple is a new entrant in this price tier with its iPhone SE, and the phone is performing quite well, which is all the more indication that this is a hot category at the moment.

Average Selling Price of 5G-enabled smartphones expected to go below $500 in the long run

The low ($100-$200) and mid ($200-$400) segments will likely continue to rise in popularity in the future as consumers try to squeeze the most value out of their purchases.

In the long term, smartphones priced between $400 and $600 are expected to see the highest growth, largely because of a projected drop to $465 in the average selling price (ASP) of 5G-ready phones.

The rising affinity for affordable smartphones will supposedly pose a challenge for premium handsets, intensifying competition in the higher-priced segments.