The price of budget smartphones has fallen considerably over the last twelve months, whilst high-end device prices have remained pretty much the same. It looks like we will see a $20 smartphone this year, marking a significant milestone in the accessibility of mobile technology.
ARM, a leading semiconductor and software design company, has shared some details on their plans for smartphones and how they think the smartphone market will evolve over the next few years. Their insights provide a fascinating glimpse into the future of mobile technology, particularly in the budget segment.
The Future of Budget Smartphones
By 2018, ARM is expecting that shipments of entry-level smartphones—devices which cost less than $150—will reach 1 billion a year. This is around twice as many budget devices that are shipped today. This projection underscores the growing demand for affordable smartphones, especially in emerging markets where cost is a significant barrier to entry.
The company also expects the first $20 smartphone to launch this year. These ultra-affordable devices are anticipated to come with Android operating systems and a Cortex A5 based System on Chip (SOC). The Cortex A5 processor, while not the most powerful on the market, is efficient enough to handle basic smartphone tasks, making it ideal for budget devices.
When Apple launched their original iPhone back in 2007, it came with a Cortex ARM11 processor, and the handset retailed for $599. The Cortex A5 processor is faster than the one in the original iPhone, and this shows how much prices have come down in the last few years. This dramatic reduction in cost is largely due to advancements in technology and economies of scale.
Implications for the Global Market
The introduction of $20 smartphones could have profound implications for the global market. In regions where smartphone penetration is still low, such as parts of Africa, Asia, and Latin America, these affordable devices could significantly increase connectivity and access to information. This, in turn, could spur economic growth, improve education, and enhance healthcare delivery by making digital tools more accessible.
Moreover, the availability of budget smartphones could also drive innovation in mobile applications tailored for low-end devices. Developers might focus on creating lightweight apps that consume less data and battery life, making them more suitable for users in areas with limited internet connectivity and electricity.
However, there are challenges to consider. The production of ultra-low-cost smartphones must balance affordability with quality. Poorly made devices could lead to a negative user experience, potentially deterring people from adopting the technology. Additionally, the environmental impact of producing and disposing of millions of budget smartphones is a concern that manufacturers and policymakers will need to address.
The falling prices of budget smartphones and the anticipated launch of a $20 smartphone represent significant advancements in making mobile technology accessible to a broader audience. As ARM’s projections suggest, the next few years could see a substantial increase in the number of people connected to the digital world, bringing with it numerous opportunities and challenges.
Source AnandTech
Image Credit Droid Life
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