Cheap smartphones on the rise

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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2 Comments

1. YouLostTheGame

Posts: 441; Member since: Dec 11, 2008

A comparison of actual "features" of a smartphone to a price-point? Hardly seems like a legit comparison. I agree that "cheap" smartphones are an atractive incentive, but there's still that little issue of a data charge. I know some carriers are cheaper than others on this, but realistically, if one can't afford a more expensive phone (say $50-100 more than avg.), I wouldn't think one would be able to fork over an extra $10-45/month for data usage. It's like a story that was run a bit ago about a $100 iphone at Wal-Mart rumor. Yeah, the phone was cheaper, but the plans weren't, so how does that change anything except people that couldn't afford the phone or plan before, could now own the phone, but STILL couldn't afford the plans!? Just doesn't seem to make sense to me. And sounds a bit like the banking/mortgage crisis that started us down this path of recession to me.

2. wifidude

Posts: 25; Member since: Apr 17, 2009

I agree with you. It just look like an easier way to lure people into buying the phone and then ***shuuuasss*** hit them with the data plan. For me, it is the same to use MetroPCS to T-Mobile, as their Blackberries all run only on the slow lane of web speed at this point, but at least metro offers everything for $50 ( I know it is not perfect ). Next to that is Sprint with the $99 plan that has everything on it. I really wish Verizon and AT&T will be more economic-friendly. To have a nice running-smartphone on both, you end up paying around $130, sometimes even $150. I know with Verizon you with 3G even on caves - at least on the caves close to where I am :D - but still the big red should lower the price a little bit. If they offered everything for $99, I would buy an Omnia on the fly or the iBerry.

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