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