How affordable smartphones are leading in innovation

The smartphone market has evolved to such a point in recent times that the affordable smartphone is now what's causing the maximum excitement. While the iPhone will continue to receive the fanfare it enjoys, the focus and innovation now has moved towards cheaper hardware.

Why?

Well, in developed markets like the US, expensive devices are subsidised, which means many people can afford even an iPhone 6, which starts at $199 on a contract. This is roughly the same amount one would pay for a low- to mid-range smartphone like a Moto G in India.

Therefore, when players like Xiaomi and OnePlus enter the market and offer products boasting the same type of hardware specifications as a Samsung Galaxy S5 for less than half the price, the excitement becomes palpable. Hence, the clamour for OnePlus One invites, the outcry over the flash sales conducted by Xiaomi and Yu on Flipkart and Amazon. This may not be technological innovation in the truest sense, but this is certainly the case of an innovative business model.

Even the component makers are chipping in to herald the new era of affordable computing devices. Let's take Qualcomm as an example. It's Snapdragon 615 and 410 processors are as powerful as its flagship chipsets from two years ago and now they offer additional features like more cores, 64-bit and 4G support.When seen holistically, you probably get better Android hardware for less than Rs 10,000 than what you got for a phone like the Galaxy S4 two years ago for Rs 42,000. The point of dumping so much cash when a phone is launched is not only some intangible flaunt value, but also a level of future readiness.

The Micromax Yu Yureka.

It can be argued that a phone like the Yu Yureka offers a better software and hardware experience than the two year old Galaxy S4. The Yu Yureka costs Rs 8,999 and you could dump that amount each year on a new phone, and get a faster phone and still save around Rs 10,000 if you think about buying the latest Android flagship phone.

Of course, phone makers like Samsung and LG understand that for their flagship phones they need to offer more. Hence, they come up with newer technologies like self-healing backs and curved displays. Unfortunately, the use cases of these new technologies are not obvious yet.

And that's why for the time being, it is the powerful low cost smartphone that will cause more impact than say a big ticket smartphone launch. The blunt truth is that the smartphone market is commoditised like the Windows PC market.

The buzz is more in the software than expensive hardware. However, every now and then, there is a really powerful affordable phone, and it will always cause a stir.