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The supply of cheap smartphones increases
Asha, Nokia's cheap line of smartphones, is far outselling its line of high-end phones, Lumia, which runs on the Windows operating system. The company's quarterly results revealed that the total number of devices from both lines, Asha and Lumia, sold in the last three months of 2012 was 14 million, of which only 4.4 million were Lumia.
There have also been rumors that Apple could launch a cheaper iPhone model. And reports that a senior Apple executive had denied the news have been withdrawn.
"We anticipate that by 2020, 31% of the global mobile phone market will be made up of low-end smartphones," IHS analyst Ian Fogg told the BBC. “The smallest and cheapest devices have processors from two or three years ago, small, low-resolution screens and worse cameras. They all offer email and web browsing, but the gaming and browsing experience is much better on higher-end phones. "
However, the difference in price for the consumer is important.
"Apple is still at the high-end end of the market," Fogg noted. "Will the company be able to remain profitable and succeed with a small share of the mobile phone market, or will it need to gain a larger share to achieve the right economies of scale?"
According to ComScore, at the end of 2012 only 28% of UK smartphone owners owned iPhones.
"Apple makes great quality products, not cheap products," Fogg added. “That does not rule out that Apple could create a cheaper iPhone that still has high-quality components. Just look at the range of iPods; they started with a more expensive product and then added the mini, nano and shuffle, ending up with a range of products that compete in different price ranges ”.
Fogg highlighted that there are already variations of the iPhone 4, 4S and 5 available at different prices. "Their strategy has been to reuse the previous generation model, rather than build a new model," he said.
At the Consumer Electronics Show in Las Vegas this month, Chinese phone maker ZTE announced plans to bring a low-end smartphone with the software to the market in Europe this year. Mozilla Firefox operating.
Source: BBC Technology
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