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  Date:7th June 2012

The two streams of smart phone vendors competing each other

The features rich $400+ priced high performance phones (iPhone, Galaxy S3, Lumia, HTC One X) from companies such as Apple, Samsung, Nokia and HTC are in one stream of phone market and $100 to $150 priced smart phones (plenty of brands) featuring most of the normal user requirements is another stream in the highly competitive smart-phone market.

While the phone brands such as Nokia, Samsung and Apple are trying to improve the performance of smart phones, The top-end phones from these brands are not affordable by the most of the majority of the population in emerging regions of China, India and such regions. Indian phone brand Micromax has launched this week a fairly satisfying phone A45 at a price of Rupees 5499 (around $100) which has capacitive 3.5 Inch touch screen and powered by Android GingerBread.

For a budget conscious buyer, atleast in India, Micromax A45 is a right fit for many middle class buyers. If you look at high performance latest phones such as Samsung S III, they are surely very attractive, but with a price tag of Rupees 43180, it prohibits many of the average buyer.

So clearly the market is defined, Expensive cutting edge performance phones serving big packets and the normal performing very affordable smart phones for money-smart buyer.

Both these streams are attempting to pull the crowd from other's streams, but not successful. The reason is cost optimized phone makers are not competitive enough to release high performance phones and high performance phone makers not competitive enough (or may be does not want give away the huge profit!) to launch affordable phones.

Infact Chinese phone makers such as Huawei, ZTE with the support of local semiconductor vendor such as Spreadtrum, they are able to increase the performance of phone at faster rate. Qualcomm is supporting the mass market with ready reference designs. That's the reason Spreadtrum and Qualcomm are the fast growing semiconductor companies in the world in 2011 and 2012. The chip-vendors targeting high-end phones not doing that great in sales compared to Qualcomm and Spreadtrum.

The high-end phone makers are first to leverage 20nm semiconductor chip making technology in adding improved human interface and high speed multi-core processor in their latest phones. Low cost vendors will surely go for that process, because 20nm nodes meant for volumes.

So if you desire to own a iPhone or Samsung Galaxy S3 is not fulfilling, just hang on for few more months you will find equally good phone available at your budget.

Thanks to Google for its open OS Android, otherwise things should have been far different.

Author: Srinivasa Reddy N
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