One of Four Handsets Shipped in 2011 Will Cost Less Than $20, Says ABI Research

According to a new report from ABI, the global market for ultra low cost handsets (ULCH) under $20 will see more than 330 million units shipped in 2011. Additionally, ABI predicts that 50 percent of these handsets will be shipped in the emerging markets of Asia Pacific, while the other half will be shipped to Africa, the Middle East, Latin America and Eastern Europe. India will prove to be the biggest ULCH market during the next five years, growing from 9 million handsets last year to more than 116 million by 2011.

While recent quarterly results from major handset makers like Nokia and Motorola have shown declining profits because of the emerging ultra-low cost handset market, ABI predicts declining ARPUs for mobile carriers in emerging markets as well. The average ULCH user has a monthly spending limit of between $2 and $5.

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