Low Cost Cheap Android Smartphones Coming @$80, Says Juniper Research

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President BlackBerry Obama would love the latest news from Juniper Research.  He dreams of the day when everyone will have smartphone access as the United States is covered with broadband access.  The only problem could be that the price of smartphone prices are usually above $150.  There will, however, be a surge of entry-level smartphones that will exceed 185 million worldwide by the year 2015.

Juniper predicts that the entry-level smartphones will be delivered at first by operators' own branded smartphones, intended to boost data usage on their networks.  Pricing of these low-cost smartphones will come down from $150 in 2010 to $80 in 2015, due to increased competition and the availability of lower-cost chipsets, states the report.

Android may be the top operating system for the entry-level smartphones.  We've seen a surge in these smartphones, such as the LG Optimus line and Samsung Galaxy family.  These smartphones cost less than one hundred dollars and can be found heavily discounted with deals.  Smartphone makers, such as ZTE and Huawei, will most likely expand to the U.S. Market.

Devices like the Orange Boston and Vodafone's 945, manufactured
under OEM agreements by handset vendors like Huawei, allow smartphone
features, like app store connectivity and an Android OS, to be offered to
subscribers without the high price usually associated with the
smartphone, finds the report:

Anthony Cox, Analyst at Juniper Research and author of the report, said "Pricing of smartphones will come down to $80 by 2015."

Further findings from the Low Cost Handsets & Entry Level
Smartphones Report include:

  • More Android-based smartphones at competitive prices for
    their local markets in the near future.
  • Compression and remote browsing is enabling the mobile
    internet to reach low-cost handsets at price points as low as $25.
  • Content strategies in developing markets are becoming
    important to reduce churn for the operator and to tie in the customer to
    the handset brand for the vendor.
  • Barriers to entering into the handset market have come down,
    opening the door for local players in growth markets, such as India and
    China.
  • First tier of local players, like ZTE and Huawei, now seek to extend
    their geographical reach to the US and beyond.

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