Half a billion sub-US$100 smartphones this year, says Deloitte
The number of sub-US$100 smartphones in circulation is forecast to hit 500 million by the end of 2012, according to new figures from Deloitte’s Technology, Media and Telecommunications (TMT) practice. The research estimates that the installed base of low-cost smartphones stood at about 200 million at the end of 2011, implying that volumes will more than double this year.
The firm said that smart devices costing less than US$100 would have the “look and feel of smartphones, sporting touchscreens or full qwerty keyboards,” but with “weaker processors, less memory, slower connectivity options [and] lower resolution cameras” – a trade-off it suggests most purchasers of these devices are willing to make.
"The biggest demand for US$100 smartphones is likely to be in emerging markets where Internet access is low but the desire for communication and information services is growing,” said Deloitte in a statement. “Yet, the US$100 smartphone could also appeal to users in mature markets where it could become a perfect teenage ‘starter’ phone.”
The firm compared the rise of the low-cost smartphone to the growth of the netbook, which offered a low-cost and low-powered alternative to standard laptops.
But it added that demand for cheaper smartphones would put pressure on the supply chain to cut the price of components and also presents a challenge for app developers as low-cost smartphone owners are less likely to want to pay for downloads.