Android Smartphones Heading For Rock Bottom Prices
How would you like your Android Smartphone to come in at under $100.00? Assuming the Mayan calendar is incorrect, we could be seeing those kinds of prices as soon as 2014. Ovum Research analyst Tony Cripps, noted that during a research Note dated Feb. 29, Google's CEO Eric Schmidt talked about how Android smartphones would be getting cheaper and cheaper in the next couple years. Cripp noted:
Will sub $100.00 smartphones annihilate the OEM's and carriers bottom line? According to analysts, no. "Nokia Symbian is already shipping phones at this level," Gartner analyst Ken Dulaney told eWEEK. "There will always be a variety with differing features. As long as consumers will spend $400 on Nike shoes then there will be people who spend $200 on phones. And they will market the high end ones because that is where the profit comes from, just like in shoes." Current Analysis analyst Avi Greengart, brought up the point that Nokia makes nice profits on its low priced featurephones and as that market slowly moves to smartphones, profits can still be made.
Schmidt's expectation that Android smartphones will be available between $100-$150 by next year already looks inevitable and will begin to redefine the handset market as a whole. The eventual goal of seeing the price of Android devices brought down into the $70 range also looks realistic to us with the advancement of technology and huge economies of scale that are starting to drive the Android economy.
Of course, this is all great news for Google, they would love carriers to just give handsets away for free so more of them get into the hands of consumers.