This IDC study forecasts strong growth of the Asia/Pacific (excluding Japan) or APEJ mobile market in the coming years, with shipments increasing from 211 million units in 2005 to 315 million units in 2010. Much of this growth will be fueled by subscriber growth in emerging markets like India and Indonesia.

"About 56% of phones in 2010 will be GSM- and GPRS-enabled, and it is easy to see the attraction of the low-end space. However, vendors need to carefully measure the pros and cons of any low-cost strategy. The price of the handset is only a small part of the equation when selling into emerging markets. At the end of the day, the cost of distribution and support in lower-tier cities could offset any potential profits," says Aloysius Choong, market analyst, Personal Systems Group, IDC Asia/Pacific.