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Ron Miller

Cheap Smartphones Could Transform Africa

Written by Ron Miller
8/22/2011 56 comments
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A story popped out at me on Singularity Hub last week about an $80 Android smartphone manufactured in China and sold in Kenya.

It caught my attention precisely because cheap smartphones have the power to transform poor countries in a big way, and that’s something that should get the attention of every business.

When it comes to greenfield economies, the fastest way to the Internet is via a cellphone. It's a lot more affordable for a country with little infrastructure to put up some cell towers, and the phones are cheaper than PCs, laptops, and tablets for individual citizens.

That's why it's so interesting that Safaricom, a Kenyan ISP that reportedly has over 17 million customers, has decided to get into the low-end smartphone business. And over 350,000 Kenyans have reportedly bought the cheap phones.

The phone itself is the Huawei IDEOS. Click through and have a look. This is not half bad for the money. It runs Android 2.2 and includes WiFi, a camera, and, of course, access to the Android app store.

I can't say how well the smartphone works or how responsive it is. When the Website itself claims "higher overall performance compared with previous releases," you can infer that it might not be the highest-quality phone on the planet, but it's not supposed to be.

Phones like this one will never compete with Apple, HTC, Samsung, and Motorola products, and they don’t have to. Huawei is following the path that Nokia has taken for years by offering a cheap, affordable phone for the masses. And it's a plan that seems to be yielding some success in Kenya.

As the Singularity Hub article pointed out, this is a country where 40 percent of the population makes less than $2 a day. Put in that light, these sales figures are especially impressive. It's hard to find any independent sources to confirm these numbers, but if they're even close to accurate, it's really an astonishing market transformation.

According to an article on Business Daily, the new phones start at 8,499 Kenyan schillings. When I checked that figure on a currency converter site, that came out to $91.74 in US money, but I imagine the exchange rate is a moving target these days.

Whatever the number, a confluence of events is putting smartphones into the hands of more and more people in Kenya, and the rest of the developing world can't be far behind. First of all, you have the Chinese factor, where cheap labor and increasingly inexpensive parts are making it possible to build cheaper and cheaper phones.

Second, you have Android, the free cellphone operating system from Google. This gives companies like Huawei the ability to build cheaper phones without having to worry about operating system licensing fees, and when every penny counts, that's huge.

You have probably heard of One Laptop Per Child, an initiative to get cheap, sturdy, functional laptops into the hands of poor children throughout the world.

It's a great program that could change lives. But perhaps more than a cheap laptop, a cheap smartphone has the power to transform poor countries and bring their citizens into the Internet age -- and that could have broad and positive social, political, and economic implications.

— Ron Miller is a freelance technology journalist, blogger, FierceContentManagement editor, and contributing editor at EContent magazine.

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abdlah
IQ Crew
Tuesday August 30, 2011 3:09:05 PM
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aum007: Companies that can adapt the Prahalad model are the companies that would survive now and in the future.

aum007
Thinkernetter
Tuesday August 30, 2011 7:03:51 AM
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Abdlah,

That reorientation is primarily what I am talking about here.Its not possible for most Westerners as they refuse to step outside their respective comfort zones...

Ashish.

abdlah
IQ Crew
Monday August 29, 2011 3:36:54 PM
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aum007: I do not think that Prahalads model is beyond the thinking of most westerners. The necessary re-orientation is all that is needed, after all he did the project work that lead to that work with westerners.

aum007
Thinkernetter
Monday August 29, 2011 4:47:51 AM
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abdlah,

very true.Prahlad talks about the right issues.Its just that the implementation involves thinking in ways which is beyond most Westerners.

Regards

ashish.

abdlah
IQ Crew
Sunday August 28, 2011 4:02:16 PM
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aum007: Most of your thoughts are in line with the case of Prahalad about the bottom of the pyramid.

Cheap definitely doesn't mean low quality where the poor are concerned.

aum007
Thinkernetter
Sunday August 28, 2011 11:35:27 AM
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abdlah,

Cost without quality is of no use for most people(no matter how poor they are). In fact in my opinion the poor are more quality conscious than the rich-They would rather buy one item of higher quality once rather than keep upgrading everytime something breaks(because of poorer quality).

The poor by and large do not believe in the disposable everything culture which is the hallmark of the West.They look to use and re-use a product for as long as is possible.

You also need quality service centres who can do most of the repairs very quickly(inside of 24 hours)

This is something which most Westerners who try to export their ideas/products to the Less developed parts of the world fail to realise.

Most Westerners just dump an old phone(even if its perfectly working) to upgrade to a new one.For someone living on $2/day its not possible.Not even remotely.

Regards

Ashish.

aum007
Thinkernetter
Sunday August 28, 2011 11:30:46 AM
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Mashka,

I could'nt agree more.

Unless we get some sort of incubators which work to harness local ideas in the poorer regions of the world,we are just going to be stuck with more and more ideas which are exported/rehashed from the west;without much thought going into critical issues like Localisation ,Quality of products and robustness.

Ashish.

Mashka
Researcher
Sunday August 28, 2011 11:02:30 AM
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Ashish, I think the problem is that those who come with the ideas to improve the Developed countries are people from the Western countries, who just don't really have a clue of  what is it- living, earning 2 dollars a day. So they  try to do their best, and they try to think- hm... If I lived in such a country, what could really improve my life- hmmm.. bingo, cheap smartphone! Definitely , if all smartphones were cheap, that would be great- ok lets make cheap smartphones for developed countries. But in fact, developed countries need something really different, but those who can tell what they really need have niether voice nor money to be heard.

aum007
Thinkernetter
Sunday August 28, 2011 10:47:42 AM
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Mashka,

Your scepticism on this issue is very relevant here.

As long as per capita incomes in Africa stay as low as they are its difficult to ensure that their way of life improves dramatically just with Internet access.

After all,lets look at how the Internet has influenced/changed lives in the Developed world.

If anything most Middle Class jobs have vanished thanks to the process of Disintermediation (removal of the middle man)which is the hallmark of the Internet.

Regards

Ashish.

aum007
Thinkernetter
Sunday August 28, 2011 10:43:29 AM
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Hounhosp,

That reminds me of the Tata Nano-The cheapest car in the world.

The Tata Group(one of the world's largest conglomerates) built the entire car with the basic idea that not only can it be assembled anywhere in India(whatever the Infrastructure is like) but also by ordinary mechanics who do not have access to the latest Technological marvels or laptops.

The question that arises with regards to Huawei is primarily this-Do they have the will and ability to build similar Customer support centres all over Kenya/Africa???

Looking at their past track record I will have to say No.Its more likely that if the phones are within the warranty period they will just give away a new phone instead of one which is broken/spoilt.

Regards

Ashish.

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