Ted Cranmore, Waterloo ON

Are Global Smartphone Sales Poised For Takeoff?

Many seem to missing a key point about the expense of smartphones in developing markets. Is a smartphone more expensive that a cheap handset? Yes. But, in these markets the masses don't have computers at home. So, either they forgo the internet or the spend money at internet cafes, or they finally invest a large amount to buy a computer for home. Now that smartphones have good web browsers, it's actually a cheaper alternative than visiting internet cafes or making the huge investment of a home computer with internet access. What's cheaper? An incremental enhancement to your smartphone, or continually visiting cafes or buying a home computer? Today's smartphones are actually small computers, and the most efficient way to join the wired world. So, in fact, smartphones will become the CHEAPEST way to achieve connectivity in developing countries. Check out the 5-8% numbers for home computers in India and China and it's easy to see the opportunity. It was a guy from Mexico who started helping me understand how the populace in developing countries approach this problem from a very different point of view.

So, smartphones may be more expensive than a plain old handset, but they are the cheaper alternative when all costs and alternatives are considered for being part of the wired world. The obvious advantage of 'always with you' still applies to other countries, but it's just a nice feature for them as opposed to the big feature it is for us.