Low-cost smartphones are becoming increasingly popular across the world. Companies such as Nokia, Samsung and Micromax have well tapped the segment with smartphones in each possible budget category. Will the smartphone prices go further down? Yes, and it might be as low as $20 (Rs. 1200 approximately) in near the future. The prediction is made by the chipmaking company, ARM.
ARM predicts a $20 smartphone running Android and single-core Cortex A5 based SoC will go on sale “in the next few months”. According to ARM, prices will not go down below $20 due to manufacturing limits. The company points out that single Cortex A5 is faster than the ARM11 in the original iPhone, which was launched at $599 in 2007.
According to ARM, performance of devices and their overall cost are two key factors for the growth of entry-level segment. Earlier this year, Mozilla showed off a $25 smartphone prototype running Firefox OS. The smartphone featured Allwinner A31 (1.2GHz); Cortex-A7 Quad-core, PowerVR 544MP2, 4.5-inch screen (FWVGA 854×480 pixels), Cameras: Rear: 5MP / Front: 2MP, 3G UMTS quad-band (850/900/1900/2100),8GB memory, 256MB -1GB RAM (adjustable by developer), A-GPS, NFC, Battery capacity: 1,800 mAh and connectivity options such as Wi-fi: 802.11 b/g/n, Bluetooth, Micro USB.
Even as the companies are launching premium-priced high smartphones, there's a huge market for ultra low-cost smartphones, especially in emerging markets. India has been a price-sensitive market with a massive market for low-cost devices. Companies such as Nokia, Samsung and Micromax have long focussed on this segment to thrive in the country.
Source: AnandTech
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