DISQUS

HereAndNow · 6 months ago

The key objective, for mobile operators, should be to get EVERYONE on smartphones. Smartphones provide a platform that can be used to deliver an infinite number of value-added apps & services. Feature phones, while less expensive to produce, don't offer the same kind of revenue generating potential.

Ways to reduce/eliminate the price difference between feature & smart phones:

1. Heavy operator subsidies (recovered via app/service/data plan revenue).
2. Fewer hardware features (eliminate mem slot, camera, GPS, accelerometer, compass, etc.).
3. Lower cost components (resistive touchscreen?).
4. Touchscreen buttons (except on/off), to reduce parts & assembly.
5. Volume production (as volumes go up, component prices go down).
6. Smartphone SOC (most/all smartphone electronics on a single chip).

Combine this with a low cost entry-level data plan (achieved via slower data rates or limited usage) and virtually all barriers to 100% smartphone penetration are eliminated.