Thursday, February 25, 2010

Prices Of Android Phones And Devices Dropping Fast - Good?

Apple has 10% of PC revenues with less than 5% of the marketshare. For computers priced over $1000, Apple commands an even greater share. ? Well, there's a lot of competition in the Android market and it appears that prices for Android devices are dropping faster than expected.

This greatly impacts the whole Android ecosystem.

Impact on users. This is easy. Competition is good for mobile warriors like you and me. Not only are prices expected to drop faster, the rate of innovations should increase as well as Android devices compete with each other and the broader mobile market. Bottomline: faster, better Android devices at more affordable prices.

But not all is rosy. Some corners might be cut to squeeze as much margin out of the device as possible. Cheaper plastics. Subpar screens.

Impact on device makers. They're fight for our business. R&D levels will need to increase or be maintained to keep up with the pace of innovation in the mobile market. That means, over time, thinning margins. In fact, some might not be around or they'll simply spin off their phone business altogether.

Motorola is still trying to split off its phone market despite the success its had with Droid running on Verizon's network.

According to Digitimes, many device makers are making a rush to get as many of their devices in the hands of consumers while some, particularly Taiwanese makers, are focusing on the higher end of the Android market. Still, at some point, price cuts will come sooner rather than later.

In order to make up for this, newer devices will need to be introduced at a quicker pace to maintain margin.

Impact on Google. Google would love it if more Android devices in the hands of consumers. It means they can sell more ads. I'm sure Google would like its partners to partake in Android's success but its goal remains a selfish one. Making money off ads.

As a consumer and fan of the Android platform, this is fantastic news.  Everything else doesn't seem to matter as much.  Good prices with great innovative phones.

More at Digitimes, Android Guys

No comments: