Axis Capital Group Review : Smart Phone Penetration in Asia to Increase
Jakarta, Indonesia – Around 85 percent of the global population currently owns mobile phones. Together, Apple and Samsung control half the global phone market. A growing middle class in developing countries and the falling cost of handsets are driving smartphone growth across the globe. Meanwhile, the growth of new activations and replacement devices in highly populated areas of the Asia-Pacific region will be an important driver for handset growth in the future.
South East Asian countries are truly a diverse region, both culturally and in terms of Information and Communication Technology (ICT) market maturity. The developing countries in ICT are Indonesia, Thailand, China and India with other developing countries hot behind their heels. Asian countries are also known to create both high-quality gadgets and technology apparatus as well as fraud devices which, unfortunately, are still in demand in the market.
Many countries have similarities when it comes to consumer habits and smartphone usage. In Southeast Asia alone, smartphone owners spent more than three hours per day on average on their smartphones in June 2013. Chat apps, social networking and entertainment activities, like games and multimedia, drive the highest levels of engagement.
Telecommunication companies such as XL Axiata Axis Capital Group in Jakarta, a telekom with sister companies in almost all the countries in Asia, have come prepared with the advancement of mobile phones in the market. Although 91 % of internet users still use their laptop and personal computers to browse online, 80% have been using their smartphones which shows the wide spread of adoption of this medium in today’s generation.
According to eMarkets Global Media Intelligence, nearly 2.5 billion of the world’s 4.3 billion mobile phone users this year will be in Asia-Pacific - a share that’s expected to increase over time.
Overall, Asia-Pacific will account for 27.7% of total media ad spending and 28.7% of digital ad spending in the world, ranking it second for both types of ad expenditure. Advertisers are lining up to reach these users, many of whom are part of a rising middle class across several emerging markets in the region. eMarketer estimates spending on mobile internet ads, including display and search but excluding messaging-based formats, will reach $4.14 billion across the region this year, up from $2.69 billion in 2012.
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