Sunday, January 13, 2013

News Card 10


Cheap smartphones global market grows
http://www.bbc.co.uk/news/technology-20986550
By Zoe Kleinman

Cheap smartphones global market grows

 
Asha, the budget smartphone line from Nokia, is outselling its premium handset offering, the Windows-run Lumia, by over two to one. The total number of both Asha and Lumia devices sold in the last three months of 2012 was 14 million. Only 4.4 million were Lumias.

 Apple may soon offer a lower-priced iPhone model. It is forecasted that by 2016, 31% of the global overall handset market will be low-end smartphones. The difference in cost to the consumer is significant: A basic smartphone in the UK can cost about 30 UK Pounds (฿1500), but the iPhone 5 currently costs over 500 UK Pounds (฿25000).

 It is questionable if Apple can maintain their market position, being in the small but premium end of the market. In the UK, for example, only 28% of smartphone owners had iPhones. The problem is cheaper phones have lower quality components and performance. Apple’s strategy has been to update older models rather than develop a new design. Analysts believe Apple should be more aggressive and develop a lower-price model

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