Digitimes–consumers prefer higher-end devices

thelowendtheory
Consumers do not want low-end smartphones.

We have recently seen LG blame their underwhelming Windows Phone 7 sales on the lack of low-end devices and higher prices, saying this is something expected to change in the future.

Digitimes however reports that the reality is that, worldwide, consumers prefer higher-end smartphones at higher price points.

They note the price of mainstream devices are still around US$400-500, and the US$500 or above segment is seeing very strong sales.

Carriers also prefer to promote higher-end devices, as cheaper, lower-end devices tend not to encourage the use of high-end services such as data plans, resulting in lower earnings per subscriber.

This results in the devices attracting generous subsidies from carriers, making even the most high-end devices affordable.

Even in countries where there are no subsidies for devices, instalment plans for handsets have meant even greater numbers have access to the best smartphone technology.

While most OEMs still harbour plans for low-end devices, most are answering market demand with more emphasis on devices with larger screens, higher resolutions and faster computing capability.

This trend should benefit Windows Phone 7, who’s Chassis 1 hardware specification eschews low-end devices and should mean an even user experience between all Windows phone 7 users, no matter which OEM makes the hardware.

Read the full report at Digitimes here.

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