As the entry fee for smartphones drops lower and lower, the wallet friendly price point found with most feature phones (or, as some might say, “dumbphones”) is beginning to lose its luster. In a day when obtaining a smartphone requires little more than 50 bucks and a 2-year promise, what’s the point of going for anything less?
According to the “Mobile Market View” study released today by The Kelsey Group, 18.9% of mobile consumers in the United States are now toting smartphones, with 49.2% planning to pick one up within the next two years.
Mobile search activity is also up across the board. When they surveyed mobile consumers on how they’d been using their handsets, they found the following:
- Downloaded or looked at maps or directions: 17.6 percent, up from 10.8 percent in 2007
- Searched the Internet for products or services in their local area: 15.6 percent, up from 9.8 percent in 2007
- Searched the Internet for products or services outside their local area: 14.3 percent, up from 6.4 percent in 2007
- Obtained information about movies or other entertainment: 13.7 percent, up from 8.2 percent in 2007
- Connected with a social network, such as MySpace or Facebook: 9.6 percent, up from 3.4 percent in 2007
To state the obvious, it’s quite apparent that consumers are more ready than ever to embrace mobile devices into their daily lives. What isn’t as apparent, however, is the responsibility the mobile industry has to get their act together and make use of this. Unless they’re damn sure they can come up with something worthwhile, it’s time to adopt open and royalty-free platforms. Drop the horribly misguided efforts to create new, proprietary platforms which do nothing but increase segmentation and confuse users. With only 19% of US mobile users owning smartphones and nearly 50% looking to jump on board, we’re going to see a whole lot of new smartphone owners soon - so lets make it as easy as possible for them to enjoy it.
(Image via Jacob Bøtter)
Maybe I am not getting the joke, but the “phone” in your picture as a label-maker…
You definitely don’t get it. Fail for you, it would seem.
That is quite obviously a Blueberry… >.<
Looks like a blackberry to me…
You guys are so thick! It’s unbearable.
No way man… this is a Dymo Label Manager 150. http://global.dymo.com/enUS/Products/LabelManager_150.html
Jacob Botter, author of picture was making a joke with a mate and article writer goes to google to find an image to ilustrate.
There is a similar trend in Europe. The era of the dumb phone is coming to an end. Smartphones are the future.
@Pavlo - Exactly. As prices continue to fall for entry-level smartphones, there will be little incentive to buy anything else. Of course, that is assuming that the entry level data plans will continue to drop in price and/or become standard issue.
I want to know what planet the writer lives on where the “average” smart phone costs $50 and a 2-year promise.
Apple’s iPhone will nail you for about $85 per month after taxes & B.S., and that doesn’t include the cost of the phone. And AT&T isn’t the most expensive plan out there either.
If all these people start buying smartphones, maybe we’ll start seeing price drops, but quite frankly, the prices are still outrageous for what you’re getting.
Why did you put quotes around “average”? That word appeared nowhere in my post. Those were the requirements of “obtaining a smartphone”. If I were to say that one could get a bike for $25, does that imply that the average price of bikes is $25?
That entire introduction was on the entry cost of a smartphone to that of a feature phone. Right now through AT&T, you can get a refurbished BlackJack II, Pantech Duo, or Palm Centro for 50 bucks - all of which would be considered smart phones. As for maintaining your ownership of the phone (rather than “obtaining”, as I specifically say in the post), the monthly bill may vary with things like data and tethering - but you have to pay a sizable amount per month regardless of whether or not your phone is considered “smart”.
Ah, I see you’re talking about second hand smart phones, rather than new ones. Great sample selection.
Still, when you say “you have to pay a sizable amount per month regardless” you’re basically ignoring that you buy the handset on credit and the carrier recovers the full cost with interest. But because there are a lot of saps out there that dont understand this, you’re probably right.
The carriers are drooling in anticipation.
I got my blackberry curve for that $50 bucks and promise.
Where did Matt Mullenweg get that yet-to-be-released Blackberry?
Love the phone, finally something that is button-user friendly but could they get a larger screen?
Blackberry an iphone is a good smartphone. But for what do you want a smartphone?
I hate to write a SMS or reading E-mail on a small Screen (smartphone)!
@Jim - It is possible to get a smartphone for $50 (for example, Verizon Online offers several Blackberries for $49.99 with the opening of a 2-year contract).
I am part of that 50% looking into upgrading to a smartphone. I lost my phone last Wednesday (an LG Chocolote VX8550), and I have been looking into getting a Blackberry since. Attracted to features including mobile access to my email account and web searches, I figured right now would be an opportune moment to upgrade. However, I just started my 2-year Verizon Select Family Plan, which charges data transfer by megs ($1.99/mb), and I’m not too excited with the prospect of upgrading my plan and paying more just to do some internet browsing and e-mail checking. As Josh Kuss said, “As prices continue to fall for entry-level smartphones, there will be little incentive to buy anything else. Of course, that is assuming that the entry level data plans will continue to drop in price and/or become standard issue.”
Is there any talk of data plan prices dropping any time soon? Or any recent developments that would suggest it?