Smartphones Coming Down in Price

In 2010 we saw smartphones pushing $1000 in price. Now that the number and kind of suppliers has exploded, prices are coming down to Earth.
China-based white-box vendors to offer below US$100 Android smartphones for emerging markets

Is there anyone left who thinks the monopoly survives when the price of a complete personal computers is less than the licensing fee for that other OS? Tablets, netbooks and notebooks will follow this trend sooner or later. The cost of entry to this market keeps falling as all the components are commodities which everyone and their brother are scrambling to supply. FLOSS fits this model. Monopoly money does not. Price and performance beats monopoly at last. M$ and its partners have no response to this. Their model is broken. Their model has been broken for a decade but the world took a while to catch on. ARM woke the people up.

Wintel cannot compete on price/performance, size, weight, power consumption, Freedom, malware and reliability. Now that all kinds of IT are commodities flowing freely in markets globally M$ and its partners cannot impose their will on the whole market except the locked-in. The free market is still small compared to Wintel but is growing rapidly. In two years the free market will be at least 50% of units shipped and the monopoly will be effectively dead. In 2011 alone, more ARMed personal computing devices will ship than that other OS. In 2012 it will be all over. Intel and partners will cut prices to slow the advance of ARM and the price of Wintel will plunge to reflect price/performance competition in 2012.

The following article is a bit dated but both ARM and x86 have made advances in processing power and price/performance. Two generations ago, ARM had 10X lower power consumption for similar computing power. In modern dual and quad-core formats, ARM still is a winner.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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