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How affordable smartphones are winning the war for
consumers' hearts
amgoo.com /blog/how-affordable-smartphones-are-winning-the-war-for-consumers-hearts
Dec 22, 2014 6:00:00 AM
The power of Chinese players in the global market
2014 has been a year of awakening for many of the biggest players in the global smartphone market
with the likes of Samsung looking to cut their product line by as much as 30% in the new year. Locked
in battle with Apple in the high end market, the real fight is trying to fend off the advances of affordable
smartphones from Chinese mobile manufacturers such as AMGOO, ZTE and Xiaomi.
This change in strategy and tightening of their 'belt' is seen as a move to improve their dismal profits
over the last few quarters and help them to regain some of their former glory, but as more and more
Chinese OEMs flood the market with cheap smartphones the competition going in to 2015 is set to be
stiffer than ever!
Low price plus high specs means a win
According to IDC, the average smartphone selling price in 2014 is about $241 worldwide, but in
emerging markets like India prices are averaging $135. “The impact of upstart Chinese players in the
global market will be reflected in a race to the bottom when it comes to price, IDC Senior Research
Manager Melissa Chau said in a statement.
The prices of smartphones dropping significantly around the world not only makes the possibility of
owning a smartphone economically viable for the unconnected in emerging markets, but it is also
making these handsets more attractive to consumers that originally bought into contracts of more
expensive models for their high end specs.
Melissa Chau also stated that while premium phones weren't going anywhere, the world is seeing
increasingly better specs in more affordable smartphones. This means that consumers no longer have
to go with a top-of-the-line handset to guarantee decent hardware quality or experience.
Functionality is what matters
These affordable smartphones come without the latest tech innovations in mobile seen in higher end
devices because there simply isn't a need or desire for them. Low cost smartphone manufacturers do
away with jazzing up their devices to be able to keep the prices so low, but ultimately provide end users
with a functioning mobile experience that allows them to perform just about every task that a high end
model offers such as surfing the internet, playing various types of media or checking email. Once
exclusive only to high end models, these affordable devices and their features are empowering millions
looking for the smartphone experience minus the high price tag.
Break the shackles of a contract phone
Phone contracts may seem like the smart way to go when "purchasing" a high end model as these
phones are subsidized but phone companies manage to recover the total cost of the mobile and then
some by charging higher service fees for voice, text and data over the life a contract.
More end users are opting to purchase affordable smartphones that provide them with a greater variety
of mobile plans that they can tailor to their specific needs. Doug Kaufman, Sprint's director of device
strategy, says that 90 per cent of phone sales with traditional contract plans had been for high-end
devices, including year-old Apple and Samsung models. That's dipped to roughly 80 per cent over the
past half-year. These devices also typically see less bloatware which makes them the best choice for
those looking for even greater mobile freedom!
Low cost smartphones and especially those coming out of China are gaining huge ground in the mobile
market around the world! Their attractive price tag offers a quality handset with high specs and
functionality that will take centre stage in connecting those in developed and emerging markets for
many years to come!
AMGOO Telecom designs and manufactures innovative GSM, 3G, LTE, and CDMA mobile phones for
markets around the globe. Request our pricelist of affordable smartphones today and discover how
AMGOO can help you to win your customers' hearts!
Topics: Knowing Your Customers' Needs, Mobile Industry

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How affordable smartphones are winning the war for consumers' hearts

  • 1. How affordable smartphones are winning the war for consumers' hearts amgoo.com /blog/how-affordable-smartphones-are-winning-the-war-for-consumers-hearts Dec 22, 2014 6:00:00 AM The power of Chinese players in the global market 2014 has been a year of awakening for many of the biggest players in the global smartphone market with the likes of Samsung looking to cut their product line by as much as 30% in the new year. Locked in battle with Apple in the high end market, the real fight is trying to fend off the advances of affordable smartphones from Chinese mobile manufacturers such as AMGOO, ZTE and Xiaomi.
  • 2. This change in strategy and tightening of their 'belt' is seen as a move to improve their dismal profits over the last few quarters and help them to regain some of their former glory, but as more and more Chinese OEMs flood the market with cheap smartphones the competition going in to 2015 is set to be stiffer than ever! Low price plus high specs means a win According to IDC, the average smartphone selling price in 2014 is about $241 worldwide, but in emerging markets like India prices are averaging $135. “The impact of upstart Chinese players in the global market will be reflected in a race to the bottom when it comes to price, IDC Senior Research Manager Melissa Chau said in a statement. The prices of smartphones dropping significantly around the world not only makes the possibility of owning a smartphone economically viable for the unconnected in emerging markets, but it is also making these handsets more attractive to consumers that originally bought into contracts of more expensive models for their high end specs. Melissa Chau also stated that while premium phones weren't going anywhere, the world is seeing increasingly better specs in more affordable smartphones. This means that consumers no longer have to go with a top-of-the-line handset to guarantee decent hardware quality or experience. Functionality is what matters These affordable smartphones come without the latest tech innovations in mobile seen in higher end devices because there simply isn't a need or desire for them. Low cost smartphone manufacturers do away with jazzing up their devices to be able to keep the prices so low, but ultimately provide end users with a functioning mobile experience that allows them to perform just about every task that a high end model offers such as surfing the internet, playing various types of media or checking email. Once exclusive only to high end models, these affordable devices and their features are empowering millions looking for the smartphone experience minus the high price tag. Break the shackles of a contract phone Phone contracts may seem like the smart way to go when "purchasing" a high end model as these phones are subsidized but phone companies manage to recover the total cost of the mobile and then some by charging higher service fees for voice, text and data over the life a contract. More end users are opting to purchase affordable smartphones that provide them with a greater variety of mobile plans that they can tailor to their specific needs. Doug Kaufman, Sprint's director of device strategy, says that 90 per cent of phone sales with traditional contract plans had been for high-end devices, including year-old Apple and Samsung models. That's dipped to roughly 80 per cent over the past half-year. These devices also typically see less bloatware which makes them the best choice for those looking for even greater mobile freedom! Low cost smartphones and especially those coming out of China are gaining huge ground in the mobile market around the world! Their attractive price tag offers a quality handset with high specs and functionality that will take centre stage in connecting those in developed and emerging markets for many years to come! AMGOO Telecom designs and manufactures innovative GSM, 3G, LTE, and CDMA mobile phones for markets around the globe. Request our pricelist of affordable smartphones today and discover how AMGOO can help you to win your customers' hearts!
  • 3. Topics: Knowing Your Customers' Needs, Mobile Industry