Economist: The rise of cheap smartphones

On the April 5, with the rise of smartphones and the growing popularity of the cheap smartphone market, some handset makers have also been vying for a cheap smartphone market, driving the rise of cheap smartphones. Here's the story of The Economist.

From next month, the UK market will have more smartphones for users to choose from, as the French Wiko company, which has been created only two years, will also sell new handsets in the UK market. Wiko wants its mobile phone products to travel through the English Channel, and the popularity of the UK market can be as popular as in France. Wiko mobile phones are priced at 70 euros (about 96 dollars) in the French market. Nearly 7% of French users who first bought smartphones in 2013 years have chosen Milanesi products, according to data from the market research institute Kantar Worldpanel analyst Carolina Milanes (Carolina Wiko). In early 2014, Wiko became France's second-largest handset-maker.

Of course, the market's low-cost smartphone makers are not the only Wiko. In both developed and developing countries, cheaper smartphone brands are aggressively scrambling for markets. In the real world, consumer demand for high-priced smartphones is falling in many developed countries, but demand for low-cost smartphones is growing. The first smartphone users are now likely to replace old-style handsets, and their focus on the brand is not overly focused, but more about price.

These consumers are likely to buy new smartphones at less cost than they would spend on their old handsets, as the cost of making smartphones has dropped dramatically. Handset makers have been able to buy standardised processors from chip makers such as Qualcomm, MediaTek and communications, which have been trying to deliver higher quality products at lower prices. They choose a variety of cameras and displays, and then combine them with other components to eventually assemble their products through the factory in China. Last year, Francisco Jeroni Mo, an analyst with IDC, another market research firm, said that smartphone shipments, which were priced below $80 trillion in 2013, had increased by more than 5 times times, Francisco Geroni Smart-phone products under 100 dollars already account for one-sixth of the total smartphone shipments.

Globally, the smartphone market is still in a fragmented state. In 2013, manufacturers outside the top five ranked around 40% of total smartphone shipments, about twice times more than 2009, according to IDC. From all countries ' markets, handset manufacturers, such as Wiko, which have no brand influence in other international markets, have been very prominent in the domestic market. At the same time, Micromax and Karbonn, who are second and third in the Indian market, have gained a better domestic market position because of their inexpensive products. In addition, the previously unknown Symphony company also occupies more than half of the Bangladesh domestic market share. According to Holger Hussmann, an industry analyst, Holge Husman, the electronics company Walton, has successfully entered the smartphone market through one of its doors.

Geronimo says the cost of making smartphones is falling, which means buyers can save more goods or buy more products with the money they have. He also said that in the 2012-year period, about 42% of mobile phones priced below $80 were equipped with processors faster than 1GHz, compared to 87% in 2013. The proportion of mobile phones with more than 4-inch screens is also increased from below 8% to 38%. Two years ago, the average smartphone price was about $325 trillion, and 2013 fell to $250, which could fall below $200 trillion this year.

In addition, in the current market, even the cheapest smartphone in the future may further reduce prices. At the World Mobile Conference held in Barcelora in February this year, Mozilla also announced the launch of a smartphone with its Firefox OS system and its communications chip, which could cost only 25 dollars in the future. However, according to Haltzman, the cost of the various materials of Mozilla's smartphone is less than 25 dollars.

Of course, more than just low-end smartphones are becoming more competitive. According to C.K Lu, a Gartner analyst at another market research firm, in the Chinese market, two of the local brands, Oppo and Vivo, have focused last year on the high-end market, which is priced at 2000 yuan (320 US dollars) or above, But last year's market share of the two companies showed growth. In fact, high-end handsets can help boost brand influence and image. Another Chinese company, Huawei, has been experimenting with high-end smartphones, and, of course, the French Wiko also launched high-end smartphones with a high-end smartphone priced at € 349.

The rise of cheap smartphones is good news for smart-phone buyers around the world. But in the eyes of Apple and Samsung's two main market-makers, this may not be too good news. Apple may be able to avoid damage with its own operating system and strong brand influence, but in reality, Apple has recently started selling a cheap version of the iphone's smartphone. Samsung, on the other hand, with Google's Android system in the industry, may be more vulnerable, and therefore more susceptible to damage. Samsung's profits fell in 2013. Samsung makes cheap handsets, but it also uses high-end handsets to make up for a profit disadvantage.

In fact, users in developing countries also favor global brands, but the problem is that manufacturers do not invest more to develop and promote their products. As a result, this gives the low-cost version of the mobile phone room for growth. As can be seen, cheap smartphones, in terms of size and price, may provide users with better products, which can cause worries in the markets of developed countries.

Of course, Samsung is very sensible in this regard, as it is also introducing products other than smartphones, including smart watches and smart wrist straps, as well as connecting home appliances. Perhaps these advantages could help Samsung reduce the negative impact of companies such as Wiko.