The $100 smartphone price barrier is broken! Nokia recently announced the 2730 Classic and Synchronica released the MessagePhone. Both mobile phones will retail for $100 or less across the developing world.
Price is also the major selling point for the Vodaphone 150, a self-proclaimed “world’s cheapest mobile phone”. Its only $15. But it only supports SMS and voice. Which brings us to an interesting question:
Which is better: price or functionality?
You could argue that its better to have something, even a stripped down $15 mobile phone, than nothing. But is price really the only factor? Even for the poorest, I would argue not. Consider the $35 Simu ya Solar which has its own solar panel, a perfect phone charging solution.
In addition, Ken Banks points out the “emerging market” handset trap with these low-end phones:
The prices may have changed, but functionality has largely stagnated. You couldn’t browse the web on the Motorola in 2005, nor the ZTE in 2008, and today you’d have the same problem on the Vodafone 150. You can’t download applications onto any of them, either. They all have monochrome screens and look pretty-much-the-same despite having a five year gap between them. Very little has changed other than price
More mobile phone functionality, please
Voice is the killer mobile phone application – bar none. Next up, SMS is the most popular application – bust should it continue to hold that title? For multiple reasons, I believe that Africa’s mobile phone future is IP based, not SMS. To gain, IP needs data enabled phones. Handsets like the 2730 and the MessagePhone.
So while I applaud Vodaphone for cutting costs, might all this gone a bit too far? Could we have innovation on functionality at a higher price point? I could see a $50 smartphone having greater impact than a $15 voice/SMS phone.
A $50 smartphone would drive data usage out to rural areas now limited to SMS-only. It would also allow for much greater opportunities by all the actors involves – rural communities and the business and development organizations that want to reach them.
A $50 smartphone would also challenge the high costs of smartphones in the developed world. A South to North innovation we all could applaud.
Feature phones – not smart phones are now becoming prevalent in South Africa – these basically have java, mobile web, music and bluetooth functionality and usually allow a memory card.
R549 = approx $75 for the Samsung E250 prepaid (no contract).
Then remember that SMS costs R0.30c to R0.85c whereas a feature phone using mxit can send messages to friends for under R0.01c a message. 50 messages a month = R30 saving a month, R360 saving a year. Other advantages – status, free music from your friends via bluetooth, games, easy access to other mobile content.
Many young people (even LS4 and below) in South Africa wouldn’t show off their SMS only phone in public.