25% of mobile phones shipped in 2011 to cost less than $20

The global market for sub-$20 ultra low cost handsets (UCLH) will be over 330 mln units in 2011. ABI Research finds that over 50% of these handsets will be shipped in the emerging markets of Asia Pacific and the remainder in markets of Africa, Middle East, Latin America, and Eastern Europe. Motorola has already shipped six mln sub-$40 handsets and another six mln sub-$30 handsets to key emerging markets including India, Pakistan, Bangladesh, Indonesia, Philippines, Malaysia, Thailand, Turkey, South Africa, Nigeria, Egypt, Algeria, Russia, and Ukraine. ABI Research expects that by 2011, almost one out of every four handset shipped globally will be an ultra low cost handset. India will be the biggest market in the next five years, growing from a little over 9 mln handsets in 2006 to more than 116 mln handsets in 2011.