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Why Cheap Smartphones Are Going To Upset the Industry

An anonymous reader writes "Just when people got used to good smartphones costing $200 with a 2-year contract, they also started to realize that those 2-year contracts were bad news. Still, it's often more palatable than fronting $600 for good, new hardware. But that's starting to change. Cell phone internals are getting cheap enough that prices for capable devices have been creeping downward below $200 without a contract. We ran into something similar with the PC industry some years back — previous-gen chips had no trouble running next-gen software (excluding games with bleeding-edge graphics), and so the impetus to keep getting the latest-and-greatest hardware disappeared for a lot of people. That revolution is underway now for smartphones, and it's going to shake things up for everybody, including Apple and Samsung. But the biggest effects will be felt in the developing world: '[F]or a vast number of people in a vast number of countries, the cheap handset will be the first screen, and the only screen. Their primary interface with the world. A way of connecting to the Internet where there are no telephone lines or coaxial cables or even electricity. In nations without subsidized cell phone contracts or access to consumer credit, the $50-and-you-own-it handset is going to be transformative.'"

2 of 234 comments (clear)

  1. Solar power and diesel generators. by WegianWarrior · · Score: 4, Informative

    While I can't comment on the third world in general, I saw a lot of solar cell setups for charging cell phones in South Sudan - people even ran solar charging as a business; a solar panel, some car batteries, a black box of electronics and 3 to 5 South Sudanese pound for a full charge.
    Also saw plenty of cell towers with solar panels and battery banks, with diesel generators for backup. Not as clean or tidy as plugging into the grid, granted... but it works. Was a life line for me for a year spent down there, and twice so for the people who lives their whole life there.
    Just because you can't plug something into a national grid, don't mean you can't get power... often cheaper and more reliable than the grid too - at least in Juba.

    --
    Everything in the world is controlled by a small, evil group to which, unfortunately, no one you know belongs.
  2. Re:Upset the industry? by Anonymous Coward · · Score: 5, Informative

    Who needs a cellphone carrier if they have access to the internet?

    To acually get to the Inernet when there is not any WiFi around?