Skip to main content

Low Cost Smartphones for the World's Poorest Citizens

The next one billion people on the planet who are first-time users of the internet will likely gain access via a smartphone, not a computer. Moreover, the internet offers them the prospect of new hope and socioeconomic advancement. Why? Many of these people are poor, very poor.

In most developing nations, the typical Android smartphone -- typically selling for $400 to $500 -- is way out of reach for many consumers that currently have a feature phone or perhaps no phone at all.

These potential smartphone owners currently only have one operating system (OS) choice in the low-cost category, (the under-$150 segment) and that is Google Android. Besides, the only mobile service they can afford will most likely be pre-paid.

According to the latest market study by In-Stat, they now forecast that unit shipments for low-cost Android smartphones will approach 340 million worldwide in 2015.

“The low-cost Android handset segment will cause some fragmentation in the Android platform,” says Allen Nogee, Research Director at In-Stat.

Most low-cost Android smartphones are likely to be released with Android 2.2 or 2.3, since these versions are a good blend of features with modest memory and processor usage.

The Ice Cream Sandwich (Android 4.0) step-up in memory and processor demands makes this release less attractive for low-cost Android devices.

In-Stat's latest market study insights include:
  • The low-cost smartphone area is Android’s to lose. This market could get much more competitive, especially as other OS vendors begin to target the space.
  • The low-end low-cost smartphones generally stick with EDGE and processors running at 600MHz speeds or less, and a single-core EDGE chip sells for well under $10.
  • Low-cost means smartphones that are $150 or less.
  • Smaller phone manufacturers will sometimes purchase from the “gray market” where component manufacturers typically don't pay licensee fees, royalties, and taxes for the products they produce.
  • Early competitors in the market include Huawei, MicroMax, Motorola, Samsung, Spice, and ZTE.

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...