Wednesday, March 23, 2011

Cheap Smartphones and the Mobile Broadband Revolution

The modular character of digital devices is becoming very apparent in the worldwide diffusion of smartphones.  Although the mainstream press often reports that the Apple iPhone is "manufactured" in China, this is really a misnomer.  Instead, it is assembled in China, rather like putting together lego blocks, while the highly sophisticated components are manufactured in Korea, Japan or elsewhere.
The Chosun Ilbo this morning carried an article headlined "Cheap Chinese Smartphones Poised for World Conquest."    It notes that ZTE, which ranked fourth in smartphone shipments in 2010, is selling its San Francisco smartphone through Tesco Mobile of the UK for 80 pounds per unit (about 145,000 won) based on prepaid calling plans.  By contrast, LG Electronics sells a phone which is almost identical, with better finish and trim, for 150 pounds.  Samsung, the article notes, has plans to release a lineup of cheaper smartphones later this year.
So the familiar pattern underlying the information revolution continues, the cost keeps decreasing while the computing and communications power increases!

1 comment:

  1. My girlfriend has the ZTE San Francisco phone and, especially upgraded to Android 2.2, it's an astonishing phone for the money.