The Realities of a $50 Smartphone 141
An anonymous reader writes: Google recently reiterated their commitment to the goal of a $50 smartphone in India, and a new article breaks down exactly what that means for the phone's hardware. A budget display will eat up about about $8 of that budget — it's actually somewhat amazing that so little money can still buy a 4-4.5" panel running at 854x480. For another $10, you can get a cheap SoC — something in the range of 1.3Ghz and quad-core, complete with Wi-Fi, Bluetooth, and GPS radios. A gigabyte of RAM and 4 gigabytes of storage can be had for another $10 or so. Throw in a $2.10, 1,600 mAh battery and a $5 camera unit, and you've got most of a phone. That leaves about $9 to play with for basic stuff like a casing, and then packaging/marketing costs (some of which could be given freely, like the design work.) Profit margins will be nonexistent, but that's less of an issue for Google, who simply wants to spread the reach of Android.
How to make a $50 phone (Score:3)
Design a $100 phone, and don't sell it through channels that will take a cut, and don't tack on any profit for yourself.
Sure, it's a good deal for the consumer, but kind of weird to act like this could be a business strategy or that there is really any new technology going into it. Charging half as much by not taking profits isn't exactly revolutionary.
Re: How to make a $50 phone (Score:4, Insightful)
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Don't talk to me like I don't understand. My point was that I don't think it's smart business, not that I didn't understand the business model.
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The real value, "Power To The People". All people chatting all over the world, the less people will be dying as a result of exploitation, whether war, terrorism, labour abuses, suppression of democracy or of course, racism and prejudice. A healthy, happier more stable global society makes for much better opportunities for good business. Sure it is more insanely profitable to ruthlessly exploit people and feed you ego in doing so but that psychopathic idea unlimited greed is just a sickness that is destroyi
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You ignored the hardware cost curve. That phone might be zero margin today, but over its market lifetime (maybe three years) the hardware cost will fall more than 50%, providing a comfortable margin on average.
Re:How to make a $50 phone (Score:5, Insightful)
As an original developer for the Kindle, I can say with some authority that I know how zero and negative margin mobile devices work.
I don't always respond to ACs, but when I do... (Score:2)
Not really defensive, I'm just frustrated that people weren't able to follow my original post and felt the need to post patronizing responses.
also, sounds like you might be projecting a bit.
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There is no contract with the Kindle. You buy it. You can use it, or throw it away, or whatever. If you use it, you might buy some goods and services with it. That was the gamble with that model. But that was also 6-7 years ago.
I'm not sure if people realized, but the first to generations of Kindle did a little worse than break even, despite their high price. The retail price started coming down once the volumes went up and also the technology around EPD got cheaper too.
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the article is pretty funny when there's already phones going there.
nokia x was selling for about 70 bucks give or take, 1.4 years ago. I bet they could have pushed it to fifty.
and I don't know where you learnt about mobile phone business but 100 dollar phones don't have fifty bucks of profit - there's just too much competition to rake in that kind of money, unless you're an american mobile phone operator and find some very stupid people to sign up to plans where they pay you 100% profit on a phone they thi
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$100 retail price - $50 manufacturing cost is not $50 profit. Since I intentionally did not describe all the other costs associated. A normal OEM of course will want to mark the phone up a bit before selling it through channels. The distributor will deal with import/export. And whole sale it to retailers. And retailers will display them in stores. Usually with a contract with the OEM to buy back unsold products. It's not a uniquely American model, and notice I never mentioned carriers. (carriers become the
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I wanted to give you an 'Insightful' mod point for making a pertinent comment about modern mobile phone contracts.
But you posted as AC and that would be about as much use as lipstick on a pig.
They forgot something (Score:2)
Re:They forgot something (Score:5, Interesting)
Oh wait, they don't even get delivered to $500 phones in time.
And few people care.
I bet the car-industry has wet dreams about the status-quo of security in the mobile handset industry:
No more recalls, no more consumer-advocate groups calling them out. No law-suits.
Re:They forgot something (Score:5, Insightful)
Possibly these $50 phones will get better security update support than most $500 phones-with-hardware-vendor-goo. Simply because the operating system on these will be provided directly by the operating system manufacturer (Google) and by contract no vendor-goo will be allowed.
My phone got pretty much every update between 4.0 and <current release> and I expect to receive updates promptly for quite some years to come. By the way (if you didn't get enough hints), this phone (and my phone of choice) is a Nexus...
There is only one other significant party in the smartphone market that has the same edge... but the phones they make are too locked down for my personal taste. So I only use those when I have to... at work for testing purposes. (I write app software for both iOS and Android.)
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And for how long.
Personally, I just don't trust Google (or any other company) where ultimately the user of the product isn't also the primary customer of the company.
The same situation ultimately ended up costing Microsoft a lot of money and good-will. They didn't care about users as a long as OEMs - their primary customers - shoved the product onto as many of their customers as they could get their hands on.
That worked well
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Since most of it is on a virtual machine abstracted from the hardware I'd say just as long as for other models.
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I get high security from a $50 windows phone.
It's just not worth it for people to develop virii for the 123 phones in use.
Seriously... I use a Lumia 521 windows phone. I might go back to android or iphone (had both) but it's cheap and it works. So I might buy a newer phone soon since I dropped mine a couple weeks ago for the 10th time or so and I have a crack. And ... lol, I put that clear packing tape on it and the screen works as good as ever so I'm taking my time.
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The smartphone world is going nowhere unless it becomes more open. Until you can download an operating system and install it on any smartphone, the update situation won't get significantly better. A firmware construction kit like Android isn't going to cut it. ARM needs to set a standard for discoverable hardware.
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My Sprint HTC one M7 received an update for Stagefright, and some other things, this morning...
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That's a feature!
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china has them beat already (Score:3)
http://www.gearbest.com/cell-phones/pp_226719.html [gearbest.com] $40 smartphone. it is on sale i realize that but the same website has many smartphones under $50. are they efforts to get Americans to buy root-kitted phones is the only thing i wonder about.
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Already running a $50 phone. (Score:5, Interesting)
I'm actually using a $50 smart phone right now. A Microsoft Lumia 635 that I picked up on Amazon for $49.99 off-contract. Specs are about right - 4.5" 854x480 screen, 512MB ram, 8GB storage, no front camera, 5MP rear camera. It does have a quad-core Snapdragon instead of a Mediatek or Allwinner, but clocked at 1.2GHz, and actually does have an LTE radio and Gorilla glass (the two reasons I bought this instead of the 535, which is newer and has 1GB of RAM).
Know what? It's a perfectly serviceable phone. I bought it as a spare to use while I get the screen on my Moto G replaced, and in a lot of ways I actually like it better. Windows Phone actually runs surprisingly well on modest hardware.
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Re:Already running a $50 phone. (Score:5, Interesting)
Have you ever used Windows Phone 7 or higher?
I bought an HTC HD7 ages ago, my only intention was to learn how to use it, in order to sell it, and then flip it a month later. Greedy commission salesman, and such.
I used it for 2 years, and replaced it with a Lumia 1020 when it died through no fault of it's own, gravity is a cruel mistress.
I cannot stress this enough, I *loathe* Microsoft, I have been a Debian user since 2001, until I bought a Mac in 2012, and I am still using that 1020, daily, because it just works.
No, there aren't as many "apps" for it, but the apps that I give a shit about are all there, web browsing, messaging, maps, email, twitter, facebook. And they just work, easily.
Microsoft got Windows Phone right.
Re:Already running a $50 phone. (Score:5, Insightful)
Microsoft got Windows Phone right.
That may be (or not) but Microsoft's brand has negative value. Nobody buys Microsoft except by force.
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IE is just more accepted by web sites everywhere.
They are the kind of web sites I wouldn't visit.
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My wife and I both have Lumia 635s now, neither of us were coerced into buying them. They're refreshingly 'clean' compared to Android phones, and were only $70...
Case in point. Take the same hardware, load Android, stick an LG label on it, and sell it for $150. See, Microsoft can't sell phones, they can only give them away.
The OS was right, everything else was wrong. (Score:5, Insightful)
I agree. Microsoft got Windows Phone right. The OS is excellent
They were just years late to the party, decided to go home and change their underwear the moment they got to the party (the WP7 vs WP8 fiasco), found out they didn't actually have any friends (app developers) at the party, and they brought a prostitute (Nokia) as their date.
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Ok, I'll preface it with "they started out with the wrong address for the party".
Re: Already running a $50 phone. (Score:2)
Except for the maddening transitions that take up so much fracking time and the lack of web browsers that aren't just alternative UIs for IE. Or the ugly single pallette tiles that block your background or the gigantic fonts that make browsing the phone and reading the headings a pain.
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I'd rather just have IE on windows phone then any browser I've ever tried on android. Chrome, Firefox, I've tried many different ones, and none of them holds candle to IE.
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Call me silly, but I can't willingly use Windows Phone. I'm that pissed off at MS.
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That's ridiculous. A manufacturer paying a consumer for a product they buy willfully and enjoy using more than a competitor's product that cost almost four times more?
Go away, troll.
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This is an off-contract phone that I'm using with a $30/mo plan. Not much room for a hardware subsidy.
Entirely possible there is some subsidy, but given that the components in this phone are largely similar to the ones in TFA, I would be surprised if it was much. This is very firmly a budget handset.
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yea I have had a couple 50$ smart phones, paid up front no commitment just swapped sim cards
they suck, but they function well enough, so whats the big fucking deal, damn thing was still faster than my desktop PC 10 years ago
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dunno about the nokia but for fucks sake the market is flooded with android 4 50$ smart phones direct out of china that when you include the darn near slave labor probally only cost them 10-15$ to produce and another 5 per unit to cover development cost over the life of the production run.
and half of them are made by ZTE which is carried by all USA celphone brands including the disposable prepaid phone as official devices, paid in full up front, the 50$ smart phone is 5 years old, out there and making a pro
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You base your assumption on what? The BOM for this phone is not substantially different than what was discussed in TFA. The Qualcomm 400 is possibly a bit more expensive (estimated wholesale costs are in the $10-15) range, but that is offset by having half the memory and only one camera.
Microsoft certainly isn't making a bundle on these things, but I seriously doubt it costs "significantly more" than $50 to manufacture.
The Patent Pool isn't Free (Score:4, Informative)
That BOM missed the $60 for patent licensing from the 3G pool.
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Rocking one now... (Score:2, Interesting)
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I like having a camera that's not a potato.
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Your phone is probably so slim that you have to encase it in a plastic potato (that costs you an extra $40) just to feel safe carrying it. Wouldn't want it to get all bendy and stuff.
My Lumia 635 is fairly slim, and has Gorilla glass, so I carry it completely naked. If it gets damaged (not likely) it was only $70.
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My wife dropped her Lumia 1020, which has a pretty amazing camera, and I had to replace the screen on it.
$20 Android 2 smartphone available if you look (Score:2, Interesting)
If you are OK with buying 10 or more, you can get android 2.3.3 phones for $20 each. They come rooted, carrier unlocked, and work pretty well. The main feature missing is no LED flash for taking picture, but everything else is there.
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The main feature is no LED flash for taking picture
FTFY. IYKWIM.
$5 camera unit (Score:1)
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That's not gonna fly. People are social, and expect a camera nowadays.
I was talking to someone who ran a photography store, and >90% of the photos they print these days come from smartphones.
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Definitely. But there are quite good camera chips for ~$1 in quantity.
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Heh...when I was growing up *cough* if someone had told me that in the future, every phone would have a super hi-res camera built in to it, we would have figured you were crazy. And if you told us it would also be a 1280x768, 30fps video camera too, we would have known for sure that you were crazy. :)
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Are they actually hi-res cameras, or just high interpolation? I'm guessing they're mostly the latter.
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Having a camera built-in to a smartphone is a huge advance (and cost savings) over having separate devices. Your phone becomes a bar-code scanner, webcam, video phone, etc, and the convenience and space saved is significant, too.
Pretty much everybody uses the camera in their phones. Forcing people to buy it separately is just hiding part of the price, that everyone is going to pay, anyhow. Plus extra overhead for connectors, casings, etc, which add nothing of value.
Doogee X5--$50 quadcore 5" HD screen (Score:2, Informative)
Well, $50 buys a lot especially in the world of Chinese smartphones. The Doogee X5 (http://www.doogee.cc/news_detail/newsId=252.html) will be released shortly, and it will cost $49.99 for the base model. It is surprisingly capable with a Mediatek MT6580 quadcore SOC, 5" HD 1280x720 display, 3G radio, 5 MP camera, etc.. The base model has only 1 GB RAM and 4 GB ROM, but for another ~$8 you can upgrade to the 8 GB ROM version. There's even supposedly a higher-end model that is 4G-capable with a Mediatek M
Re:Doogee X5--$50 quadcore 5" HD screen (Score:4, Insightful)
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He's just copying the site spec's it's obvious some marketing clown has gotten rom mixed up with flash storage - it wouldn't make sense to have different models with just different rom sizes.
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Too bad Doogee is one the worst china phones manufactures. Read https://www.reddit.com/r/china... [reddit.com] for more info.
S3's are $90 on eBay (Score:2)
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If "everything possible to remove them from the market" means "not making them anymore", then yes, you're right.
Labor? (Score:1)
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Please, you can buy one now retail (Score:2)
Look anywhere, here
http://www.ebay.com/itm/Huawei... [ebay.com]
Heres a $44 USD phone, same one I bought here in Canada for $49 from walmart.
Microsoft already did it (Score:4, Informative)
In the 3rd world of USA Walmart! The Lumia 635 is usually less than $50 and quite a decent smartphone, in fact, the only one I use until the 640 came out which is $20 higher and has a display polarizer for sunlight, larger display and a front camera. Did I mention the 635 and 640 are both quad core, LTE devices? Oh yeah, they are.
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My son picked up a cheap Windows phone. I told him he was crazy. He used it for less than a month and is back on Android. Just as I expected, he hated the Windows phone. Not only the lack of apps, but it was flat out buggy.
It's not really saving you any money if you have to spend money on a bunch of cheap phones before you find one that actually works! And I know this from experience. :)
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Major performance problems at that spec level (Score:1)
With specs like that -- the worst of it being the low amount of RAM and the likely extremely slow NAND -- that phone will probably have severe performance problems with many popular apps, even some of the Google apps. I have an old "Android-on-a-stick" device with similar specs from a few years ago that can barely run the Play Store now.
And I'm not even talking about games. Web browsers, navigation apps, media players, voice assistance, productivity apps, and even shopping list apps have seen increases in t
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You're looking at carrier-subsidized prices. The "free" phone you get for signing up for accounts still costs some amount, often a non-trivial amount. I picked up a $10 Coolpad Arise myself for testing some things, and even though there's technically no contract involved it's still been subsidized by the carrier expecting you to then pay them for service. The $50 smartphone is $50 retail, out the door, full cost nothing added or removed, direct from the vendor.
This is a bigger deal for developing countries
Smart phone? Nope (Score:2)
I don't want a smart phone, but I'd sure like a small, rugged reasonably high quality "dumb" phone.
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Using a Samsung dumb-as-rocks phone myself, $12 at Walmart. It's been banged around and nearly crushed a few times and you can't tell it's ever been out of the packaging.
Microsoft tax (Score:2)
What about the extortion fee that other Android phone makers pay?
Re: Goo phone (Score:1)