Commoditization Not Yet Happening With Smartphones

The mobile industry development and analysis company Asymco has released an interesting report on whether commoditization is occuring in the smartphone market. When the different brands of smartphones reach the point of having the same features and quality, a person’s choice on which smartphone to buy becomes mostly about price, and at that point smartphones will become a commodity and prices will decline.

Asymco’s study has found that the average selling price of smartphones has actually increased, with iPhone sales being a big influencer on that price. The study also shows that companies that only sell smartphones (RIM, HTC, Apple) have the highest average selling price, while diversified companies, which are companies that sell both smartphones and non-smartphones (Nokia, Samsung, LG, Sony Ericsson, Motorola) have much lower average selling prices.

Android is being used by the diversified companies to sell smartphones and therefore raise their average selling price. It does not appear that companies are making much money on non-smartphones, making one wonder why they are being sold at all. Based on the data in their study, Asymco predicts that by the end of 2012 it will be hard to find any mobile phone that does not run a smartphone OS.