Next Big Thing - Smartphones: Why low cost is high priority
Next Big Thing - Smartphones: Why low cost is high priority
2014-04-29
hello and welcome I'm Brian Cooley in
search of the next big thing by the end
of this year 2014 it's estimated that
some 1.7 billion people will be using a
smartphone pretty impressive number
except in a world of 7 billion people
and rapidly counting it's still a
smallish minority the estimation now is
that the next billion users will come on
board and start using a smartphone
because of one device feature in
particular cheap this compact so large
4.5 inch screen Firefox OS phone a 2
megapixel camera it's curved white body
doesn't look to you but get directions
for you search the web coming very soon
this could be the perfect introduction
today's typical five to eight hundred
dollar premium smartphone no matter
where you hide the cost of it is a
non-starter for hundreds of millions of
people who are either in secondary
economies or who are personally right
now in a secondary economy they are sort
of off the grid in a world that has
moved and mass from personal computers
to mobile devices for so much of their
computing connectivity and social
behavior CNET's editors came away from
the 2014 Mobile World Congress in
Barcelona convinced that just about
every player in the mobile game has made
low-cost a high priority despite its low
price the Moto G feel well built and
like the Moto X features a curved back
that's comfortable to hold now if you
used to high-flying cutting-edge
smartphones then this thing could be a
bit of a shock to the system because
it's absolutely tiny and it's very basic
but the upside there is it it's
extremely cheap nokia says it's going on
tell immediately around the world but if
you're low budget phone aimed at
emerging markets now wha we said before
that wife stands for year and that mixed
with Firefox OS means that you're
looking at an entry-level device here
ultimately then the question is does
this tweaked version of Android really
have enough apps to be tempting you can
pick this phone up to Vodafone but in
mere 50 pounds
on pay as you go the device is currently
available for 4999 without a carrier
agreement okay several trends i hope you
spotted their first of all lower spec
handsets and i mean lower spec not lame
one camera instead of two perhaps fewer
megapixels two core processor instead of
four or eight maybe a little less
storage a screen you were fine with a
year ago and lots of plastic everywhere
but none of that breaks the key function
and premise of a smartphone which is
your digital life everywhere next is the
lower-cost platform focus now android is
already basically free to handset makers
though they will pay a fee if they want
to build in pre-installed certain google
services microsoft just made windows
phone free to makers of devices below
the 9 inch screen size that covers all
phones and phablets the mozilla
foundation is showing a reference design
for a $25 firefox based smartphone now
yes the screen is fairly small kind of
crummy resolution just two gigabytes of
storage and a low-powered processor but
if you're coming off a dumb phone with a
t9 right now those are details finally
Samsung keeps dancing around this Tizen
OS which is based on linux mobile the
idea here is to go straight to the
carriers and say look we can get
together and make a phone that is pretty
well function but keeping Apple and
Google out of the mix giving you carry
or more flexibility and I can assure you
those carriers will use that flexibility
to go downmarket to capture new users
then there's Laura cough service this is
big because that is the biggest expense
you have as a smartphone owner over time
of course that Firefox OS phone only
runs at two and a half g network speeds
which is very slow by develop standards
but honestly they've had all the costs
driven out of that kind of network and
communications technology which helps to
make the phone very cheap and let's be
honest out there in the real world on
your fancy 3g or 4g phone how often is
it really running above two and a half g
speeds there's a big trend toward
bundling these family plans framley
plans multi-device data bucket plans all
of them tend to make more efficient the
purchase of data where most of your
smartphone activity takes place and then
there's the monthly no contract
revolution even in a rich market like
the u.s. we're at
nearly a third of all phone users are
now on a no-contract month-to-month plan
that's remarkable and a lot of it is
about cost savings as well as choice and
flexibility finally there's a big push
by carriers in many markets to use
spectrum differently in this could lower
costs as well moving a lot of the
traffic off expensive difficult hard to
provision cellular towers on to more
Wi-Fi hotspots that are dedicated to
carrying mobile traffic not just
portable traffic in the US for example
the FCC is taking a controversial
opinion that it's time to redeploy some
broadcast spectrum to those kind of
purposes like so many technology
revolutions the smartphone era began
with an emphasis on a flight toward
quality performance an obsession with
the gear and what it could do followed
by a very predictable second phase
another big lobe of users who are
focused on convenience and cost
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