My thesis for the smartphone industry is that the industry will be increasingly driven by the conversion of price-sensitive buyers in developed and emerging markets from lesser phones or no phones to smartphones. The market for high-priced mobile devices in developed economies is saturated. Almost everyone who is willing to purchase an expensive smartphone has done so. Therefore, the market for expensive smartphones is now dependent on the consumer upgrade cycle like the PC market before it. This will put inexorable downward pressure on handset average selling price.