The global ASP for smartphones is expected to drop by about 10% from US$280-290 in 2010 to US$250-260 in 2011, according to Taiwan-based handset ODMs.

The 10% decrease is lower than the originally projected 15-20% mainly because of growing demand for expensive high-end smartphones, such as models equipped with dual-core processors or LTE, as well as increasing material and component costs, the sources pointed out.

However, the proportion of total sales volume for entry-level smartphones sold below US$200 will rise from less than 20% in 2010 to 30% in 2011 and may reach 50% in 2013, the sources indicated.