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Cheap smartphones on the rise

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Cheap smartphones on the rise
As every other industry, the mobile one has also suffered the consequences of the global economic recession. The interesting thing here, however, is that while demand for phones, as a whole, has lowered, smartphones are actually becoming more and more popular among users. Now, in such an economic climate, which would be the feature of a smartphone that would turn out vital for the consumer – an 8-megapixel camera? Hardly. A great music player? Probably not. The answer is a cheap price. So, having that said, which would be the leading cell phone offered on the market? Of course, the cheap smartphone, for it gathers a high functionality and an easy access to the Internet at a more affordable price. According to Reuters, RIM has indeed surprised investors on April 2 with a high profit, thanks to its more affordable BlackBerry models. However, the source reminds that Nokia, the currently leading smartphone manufacturer, is not that flourishing. The company is expected to report a “sharp fall” in profits for the January-March period. Still, these overall results will contrast to the company’s budget-oriented first touchscreen smartphone, the 5800 XpressMusic. This device has actually faced a great demand in the Middle East, Eastern Europe and Asia, as well as in more developed markets. According to a GC Capital analyst, this could help it achieve sales comparable to the ones of the iPhone - one of the most popular smartphones for some time now.  So, this is what we call a demand for cheap smartphones, or the consumer’s will to get more, at a lower price. As a result, a lot of companies have found it difficult to stay relevant to the new market conditions, delivering fancy but expensive gadgets that only a few people could afford.

We hope that manufacturers that have once delivered cool phones, capable of satisfying people’s needs and making them smile, will manage to re-orientate their businesses, in order to keep it going.

source: Reuters

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