Due to this, the worldwide smartphone value was expected to fall from US$458.5 billion in 2019 to US$422.4 billion this year, a drop of 7.9%, the firm said, adding that the current conditions would see people prioritise spending on essentials.
IDC said phones in the low to mid segments — US$100 to less than US$400 — had dominated shipments thus far in 2020, with 60% market share in the second quarter and was expected to grow to 63% by 2021.
The mid to high segment — US$400 to less than US$600 — increased its share by about four points to 11.6% in the second quarter, with Samsung, Huawei, OPPO, Xiaomi and vivo driving this segment.
"Subsequently, the overall portfolio in smartphones is moving toward low-to-mid end devices. This has intensified competition as market players need to continue presenting attractive deals and bundling offers to encourage consumers to purchase a new device, especially in the higher-priced segments."
IDC said the pressure on prices was a global phenomenon, though it was most pronounced in the Asia-Pacific (excluding China and Japan), South America, the Middle East and Africa and Central and Eastern Europe.
But even in the US, devices priced at less than US$200 increased their share by 10 points to capture 27% of the market in the second quarter.
"Looking forward, as consumers increasingly want a better value proposition from their phones, the low and mid segments (US$100-US$200 and US$200-US$400) will remain the most popular," said Nabila Popal, research director with IDC's Worldwide Mobile Device Trackers.
"However, in the long term, IDC expects the fastest growth will be in the US$400-US$600 price band as 5G sales grow and the average selling price for 5G phones drops to US$465 in 2024."