The unprecedented growth of smartphones is a hard trend to miss. Yet, the blistering pace that we have experienced so far will seem slow compared to what we see in 2011 and 2012.
Growth is set to jump to warp speed because smartphone prices will drop substantially over the next year! A report last week by Seth Weintraub at Fortune.com titled, “2011 will be the year Android explodes,” highlights this shift. The article states that with new advances in hardware, real smartphone prices, the price of a mobile phone without a contract, will drop from $200 to under $100.
This is not the cost of components used in the Smartphone, it is the retail cost!
So think about it, at a retail price of $100, AT&T or Verizon, with a two-year service contract, will be giving these devices away for free. Hence, for a service agreement, you’ll also be able to get a pocket-sized computer that is more powerful than many PC’s we grew up using. You’ll be able to get a device that makes you more connected and puts infinite amounts of data, information, and content at your finger-tips. You’ll get a device that connects you with the everyday physical world in more immersive, compelling and interactive ways as well as tracks your every movement and records all your social interactions.
This dramatic shift in price is sure to broaden the use of smartphones on a grand scale. In addition, because of their unique feature sets, more wide-spread use of these devices is sure to bring about a significant change in the way people across the global engage with the physical world and connect and interact with others.
Furthermore, I suspect that few businesses are ready to take advantage of the opportunities that this growth will bring with it. The opportunities to expand their business or enhance the relationships they have with their customers.