The $100 'smartphone' reaches its first half billion
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The $100 smartphone reaches its first half billion
Over half a billion low-cost smartphones - sold for less than US$100 - will be in use by the end of 2012 as demand for basic handsets that still have computer-like functions continues to grow. The rise of the $100 smartphone is analogous to the growth of the netbook - low cost, low power laptops - as consumers look to replace more basic handsets but don’t need the power or functionality of high-end devices. The biggest opportunity is in emerging markets where internet access is low but the desire for communication and information services is growing. Yet the $100 smartphone could also appeal to users in mature markets where it could become a perfect teenage ‘starter’ phone. This will put pressure on the supply chain to cut the price of components but also presents a challenge for app developers as low-cost smartphone owners are less likely to want to pay for downloads.
- What factors will fuel the rise of the $100 smartphone?
- Which market segments will be most attracted to lower-cost smartphones?
- How will this growth impact related industries?
- Duncan Stewart, Director of Deloitte Canada Research and co-author of TMT Predictions
- Paul Lee, Technology, Media and Telecommunications Sector, Deloitte Research, Deloitte United Kingdom
Stephen Heasley, Global Online Communications, Deloitte Touche Tohmatsu Limited
TMT Predictions 2012
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