Smartphones are at the center of everyones life. They have transformed from a communication device to a lifestyle accessory that manages everything from social life to finances. As smartphone reach a high adoption rate in developed nations like US, Canada and Europe, there is a huge opportunity to bring them to emerging markets. India and China have a combined population of over 2 Billion. While popular smartphones have high price points which work in the developed world, emerging markets need a smartphone at a lower price point. Local smartphone makers like Micromax and Xiaomi have sprung up in these countries and are gaining huge market share in emerging markets.
While Mobile World Congress this year has been about LTE updates in Europe and Samsung unveiling more wearables, Nokia announced its line of Nokia X Android phones (after being acquired by Microsoft) at a price below $100. While this is a good step for Nokia, Mozilla’s Firefox OS phones are being made for developing nations which would be sold for $25. Of course, the $25 Firefox OS phone is not yet released. If Mozilla is able to meet the $25 price point, it can gain significant market share in Latin America and African regions. This can make it harder for other makers to penetrate into these markets. While Nokia expects its Nokia X phone to do well in emerging markets, the local makers have already gained some market share and popularity in the regions and it would be interesting to see adoption rates for the new line of devices. As Mozilla and Nokia enter the emerging markets, other makers are expected to announce a range of smartphones targeted at emerging markets this year.