December 28 2008

smartphones under $100

Refurbished iPhones are now available for under $100. With the iPhone at $199, the Google G1 at $179 and various Windows Mobile devices such as the Blackjack II available for less, you assume that its just a matter of months before the standard is under $100. We would guess that this means yet another acceleration of smartphone adoption. The 28% year over year growth in smartphone shipments of the third quarter of this year might actually be lower than we see next year. This may result in the dynamic that we see in other markets (Asia and Europe) of a very large segment of people where the smartphone is the primary Internet device, something that hasn’t quite emerged yet in the US. We think, especially with the rise of interesting device capabilities such as GPS, accelerometer and proximity detection, that this will spur a whole new class of applications for mobile devices, far beyond email and web browsing.