According to Juniper Analyst and Report Author Daniel Ashdown, Smartphones will make up the majority of shipments within five years, as these devices become available at lower price points. Economy smartphones, which have a retail price lower than $150, will account for nearly one-third of shipments in five years

   “Competition amongst vendors offering premium smartphones is intense,” Ashdown said in the report. “In developed markets, many consumers will want to upgrade from a feature phone to a smartphone, but still pay a feature phone price. In emerging markets, lower average consumer spending power and lack of operator subsidies will make a low price point essential. We predict that open-source operating systems, combined with the falling cost of key components will make this possible.”

   The report, titled “Smartphone Evolution Strategies: Premium, Standard and Economy Markets 2011-2016,” also shows a robust market for premium smartphones with a retail price higher than $400. Juniper claims new premium technologies such as NFC, 3-D and Biometrics, will continue to attract and drive customers in both commercial and enterprise markets.

   “Features of other devices continue to be integrated into smartphones — including gamepads,” said Ashdown. “Smartphones are reaching the market which can morph into other devices such as tablets and netbooks. Improved smartphone plans and handset subsidies, and the impact on subscriber retention costs for operators all point to positive signs for the industry’s long-term health.