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Budget-Smartphones on the Rise

Consumers normally have different emphasis or considerations when picking a smartphone, such as data applications, operating systems and functionality. However, the situation has slightly changed amid the global recession. Many of the smartphone-buyers nowadays have shifted their focus to the price of the device. "Budget-smartphones", therefore, start shining in the cell phone market.

The world’s largest smartphone-maker Nokia announced its Q1 results on April 16, 2009, reporting a 90% plunge in its profit as a result of the economic downturn. Nevertheless, there was still one bright note. Nokia’s first touchscreen smartphone 5800 XpressMusic was proved to be a huge success, hitting a sales volume of 2.6 million units in just one quarter. Demand for 5800 remains strong in the Middle East, Eastern Europe and Asia, while it gradually emerged as one of the major competitors for the popular iPhone.

Meanwhile, the second-largest smartphone-maker Research in Motion (RIM) beat its own forecast for its fiscal Q4 ended February 28, 2009. The manufacturer not only reported a strong sales of US$3.46 billion fueled by its affordable BlackBerry devices, but also surprised analysts by attracting half a million more subscribers during the period.

While demand for cell phones dropped as a whole, smartphones are, on the contrary, becoming more and more popular worldwide, especially the "budget" ones. Figures mentioned above obviously show consumers’ will to get more at lower price under the global downturn. Smartphone-buyers nowadays opt for devices with high functionality and easy access to the Internet, yet paying less. As Samsung Mobile Display forecasts, smartphone sales are likely to jump from 170 million units in 2009 to 500 million units in 2012. It is also expected that smartphones will continue to grab market share from feature phones, with the proportion rising from around 14% of total handset sales this year to 29% by 2012. In order to get hold of this huge business opportunity, smartphone-makers may consider restructuring their businesses to attract consumers and meet their needs, hence keeping the business growing.

Tags: BlackBerry Accessories, BlackBerry Silicon Skin Cases, BlackBerry Batteries, Palm Centro Accessories, 4-in-1 PDA Stylus Pen, Memory Cards, LCD Protective Film, Finger Stylus

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