News / Science & Technology

    Low-End High-Tech Mobile Phones to Reach World Markets

    Ralph Jennings
    The iPhone has become a status symbol in much of the developing world. But smartphones and their next of kin, media tablets, are falling in price as low-cost Chinese developers gain ground. That means cheaper mobile devices in countries that find the high end too expensive.

    Smartphones such as the iPhone, the Blackberry and Samsung’s Galaxy series have sold handily for years in developed markets. Another 875 million are expected to ship this year.

    Consumers in developed countries may pay more than $500 for each touchscreen handset. But prices are slipping as global shipments of smartphones and tablets grow, motivating new manufacturers to test the market. That trend means easier access for consumers in developing countries.

    Wilson Mao, an analyst with market research firm TrendForce in Taipei, said smartphones eventually may sell for less than $100. He said they would be made in China.

    Mao said the lowest priced smartphones will sell for $65 to $70. He said companies such as Lenovo, Huawei and ZTE, among China’s first-tier smartphone makers, will provide these handsets and that they already have experience in selling overseas.

    Figures from the tech market research firm Gartner show that Chinese brands Huawei, TCL and ZTE have all seen sales grow. They shipped a combined 150 million smartphones last year, up about 15 percent over 2011. Gartner data also shows that last year smartphones cut into the market for less technically advanced feature phones, which were once the staple for developing countries.

    Silicon Valley market research firm IHS iSuppli forecasts that low-end smartphone shipments will reach 559 million in 2016, more than twice last year’s figure. The cheaper units, led by China, are largely bound for the nearby developing markets of India and Indonesia.

    Consumers will preview the newest smartphones and tablets in Taiwan next week. Smartphones big enough to look like tablets and tablets small enough to rival phones, for example, are forecast to go on display from Tuesday at the buzzing Computex Taipei tech show. Computex is one of the world’s largest annual tech shows and will bring together at least 1,700 exhibitors through its final day June 8.

    Smartphones and slightly larger media tablets have fallen in price partly because components cost less. For example, Silicon Valley’s iconic chipmaker Intel has worked with mobile carriers in the emerging markets of Africa, India and Russia to develop obscure smartphone brands by offering them the key component, its Atom mobile device processor.

    This year Intel plans to unveil a line of mobile device chips under the Silvermont series name. The company says these processors, designed for better smartphone photos and stronger Internet identity protection, will be affordable to producers of low-end smartphones. Intel controls 83 percent of the world processor market.
    Competition also has increased as mobile device makers scramble to fill a void left by declining PC sales.

    In the first quarter of 2013 compared to the same time a year ago, shipments of the traditional home and office computers dropped nearly 14 percent. Shipments are forecast to fall again for full year 2013 as the popularity of tablets has slowed replacements of PCs.

    C.K. Lu, a smartphone analyst with Gartner in Taipei, says price pressure will mainly hit middle-end smartphone makers over the next two years as they struggle to differentiate themselves from the low end.

    Taiwan’s HTC is one middle-end smartphone maker, and it reported a squeeze in profits over the past six months.

    Lu said smartphones selling for $150 or less lack the screen quality and speed of their pricier peers, but still perform. “It does put price pressure especially on the middle end, it makes the middle end player more and more difficult to differentiate prods from low end because even the low-end spec is very attractive, or another term which is good enough to use,” he said.

    Some analysts said top mobile device designers such as Apple eventually will release new devices to follow the low-price trend. Neil Mawston, executive director of Strategy Analytics in Britain, said Apple must release a small iPad within three years for hundreds of millions of cash-strapped, prepaid users.

    Apple currently sells its iPad mini for as little as $329, down from about $400 for the larger iPad 2.

    You May Like

    Multimedia Obama Calls on Americans to Help the Families of Its War Dead

    In last Memorial Day of his presidency, Obama lays wreath at the Tomb of the Unknown Soldier at Arlington National Cemetery

    The Strife of the Party: Will Trump Permanently Alter Republicans?

    While billionaire mogul's no-holds-barred style, high-energy delivery are what rocketed him to nomination, they also have created rift between party elites and his supporters

    China's Education Reforms Spark Protest

    Beijing is putting a quota system in place to increase the number of students from poor regions attending universities

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora