The Poor And Not The Rich Are The New Gamechangers In The Smarphone Industry

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If you've been to tech websites today, you must know that the biggest story to come out of the mobile industry in the past 24 hours is certainly Mozilla's announcement of its $25-priced smartphones.

If you've been to tech websites today, you must know that the biggest story to come out of the mobile industry in the past 24 hours is certainly Mozilla's announcement of its $25-priced smartphones.

The move makes it clear that the company, famed for its browser applications, now wants to make its mark in the smartphone industry by producing the cheapest products – monetarily speaking. However, it isn't clear why. There must be something they know and the public doesn't, and actually, there is.

For many years, Mozilla's flagship app, Firefox, has been steadily losing its market share to Google Chrome and other competitors, so it makes sense for them to venture into other markets. That intent of branching out was evident in the launch of Firefox OS for smartphones last year, and now their entry into the phone-making business only validates that point.

Mozilla aren't the only ones trying to focus on the more budget conscious customers. Apple tried to do the same with its iPhone 5C, although its $649 pricing killed the whole idea. Android, too, was designed to cater those who couldn't afford Apple's products. So what has brought this shift from serving the rich to serving the poor?

According to a research by British firm Mediacells, India and China alone will buy 500 million smartphones in 2014, and considering that the majority of people live below the poverty line in these countries, it would be wise to offer them something they can afford.

The projected demand of the two countries will be almost half of the demand of the 47 countries that have traditionally been the most enthused about smartphones and other high-end gadgets. Also, 80 percent of those 500m users will be first time users of smartphones, meaning they are up for grabs if someone is looking for long-term customers. Hence, it makes sense for new entrants like Mozilla to try their luck into this potential Godzilla of a market that hasn't been tapped into yet.

During the $25 smartphone's announcement, Mozilla CEO Jay Sullivan talked about how his company's product could 'flood' the market. And if the two Asian giants play it out like they are expected to, Sullivan's prophecy could come true.

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