Cheap smartphones killing mid-price phones

Buyers seeking slightly pricier low-end smartphones that are more iPhone-like

Nokia's iPhone-wannabe 5800 XpressMusic smartphone is doing great, analysts say. But Nokia as a whole is expected to report a steep drop in profits for the first quarter of 2009. While the company still dominates with a 40 percent market share, it is expected to see its lead erode while BlackBerry maker Research in Motion gains ground.

The reason: Buyers are shifting en masse away from Nokia's lower-priced models and seeking slightly pricier low-end smartphones that are more iPhone-like with Internet capability, more processing power, better screens, and full QWERTY keyboards.

The 5800 is Nokia's star for now. It sells for less than an iPhone in Eastern Europe, the Middle East and Asia, where it outsells Apple's superphone. Nokia may even match Apple's worldwide first-quarter shipments with more than 2.5 million 5800s sold, according to some forecasts.

Smartphone success comes at the expense of middle-ground of "feature phones," industry jargon for the sort of camera-phones and music-player-phones made by Sony Ericsson.

Meanwhile, buyers are opting for lower-end BlackBerry models. That's why industry watchers expect Research in Motion will see a 10 to 20 percent rise in sales this quarter, despite a 10 percent slump in the overall market. Even in a recession, people seem unable to resist buying themselves a cool phone.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Paul Boutin

The Industry Standard
Topics: mobile phones, smartphones, Nokia, iPhone
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?