While technology enthusiasts look forward to a number of high-end smartphone announcements vendors are preparing for Mobile World Congress next month, 2012 will see entry-level smartphones become more popular than ever. Market research firm Deloitte estimates that the number of sub-$100 smartphones in use globally will surpass 500 million this year, and by the end of 2012 there will be 200 million NFC-equipped devices in the hands of consumers. The firm also sees apps continuing to play a huge role in the mobile market, with the number of available apps set to top 2 million later this year. ”The number of apps available reached one million in December 2011 and will double again by the end of 2012,” Deloitte TMT analyst Jolyon Barker said in a statement. ”However, the proportion that are paid for remains small. Only a fifth of downloaded apps sell more than 1,000 copies and only a tiny proportion of unpromoted apps will ever become successful.” The firm’s full press release follows below.

Deloitte analyses top trends for the telecoms industry for 2012

17 January 2012

• The number of £65 “smartphones” in use will reach 500 million.
• The number of apps available will surpass two million by year-end 2012, double the total as of December 2011.
• The volume of data sent between devices via short-range wireless connections, bypassing the Web, will double in 2012.

The Technology, Media and Telecommunications (TMT) practice at Deloitte today announces its predictions for the telecoms sector in 2012, forecasting that the over half a billion low-cost smartphones (costing less than $100, or £65) will be in use by the end of 2012.

Jolyon Barker, global lead for Deloitte’s Technology, Media and Telecommunications Industry, comments: “This year’s predictions cover a range of topics, including the future for apps, demand for data and the rise of devices with near-field communications technology.

“The number of apps available reached one million in December 2011 and will double again by the end of 2012. However, the proportion that are paid for remains small. Only a fifth of downloaded apps sell more than 1,000 copies and only a tiny proportion of unpromoted apps will ever become successful.”

Simon Kerton-Johnson, lead telecoms partner at Deloitte, adds: “The number of devices with embedded near-field communications technology is set to soar to 200 million by the end of 2012. NFC – the transfer of small amounts of data over a very short distance – has been dominated by the ‘wave and pay’ notion of embedding a credit card into a mobile phone but the application of the technology is likely to have a wider reach.”

The $100 (£65) “smartphone” reaches its first half billion

Smartphones are typically considered high-end devices; yet by year-end 2012, at least 500 million $100 (£65) “smartphones” will be in use. These devices will have the look and feel of smartphones, sporting touch screens or full qwerty keyboards. $100 smartphones will have weaker processors, less memory, slower connectivity options, lower resolution cameras – but purchasers of these devices will be happy to trade off lower specifications for lower price. The rise of the $100 (£65) smartphone is comparable to the growth of the netbook, which offered a low-cost and low-powered alternative to standard laptops. The biggest demand for $100 smartphones is likely to be in emerging markets where Internet access is low but the desire for communication and information services is growing. Yet, the $100 (£65) smartphone could also appeal to users in mature markets where it could become a perfect teenage ‘starter’ phone. This will put pressure on the supply chain to cut the price of components but also presents a challenge for app developers as low-cost smartphone owners are less likely to want to pay for downloads.

So many apps – so little to download

The demands on the developer are increasing as the variety of smartphones and tablets increases. To reach a global target market, a developer may have to make 360 different variants which has almost called time on the part-time app developer. With so much choice on offer, app-store providers should consider ways to improve and assure the quality of the products on offer. Stores should look to differentiate by considering subscription models focused on different genres, or selected by editors, that would create ‘app bundles’. As smartphones go truly mass market, there will be a growing demand for local language, local content apps.

Web Bypass: delivering connectivity without the internet

The strain on networks, both fixed and mobile, is set to force more people to turn to short-range wireless connections to transfer data. Such technology has been pervasive before in the form of infrared and Bluetooth connectivity and is set for a resurgence in the form of web bypass – cutting out the need to connect to the internet at all – as the need for the quick transfer of data between devices and users grows. Roughly one per cent of all wireless data exchanged in 2012 will be between devices rather than routed over the internet, double the level of 2011. With telecoms companies balancing the need to invest in network improvement with the demands of customers for data capacity, web bypass will emerge as a third network option alongside fixed broadband and mobile for transferring information.

NFC and mobile devices: payments and more!

Many people remain uncomfortable with the notion of using a phone to pay for items and consumer perception about the security and battery-draining aspects of NFC need to be overcome. Even if 2012 turns out to be no more than a “transitional year” for mobile payments, the NFC chips will not go to waste. There are thousands of applications of NFC – from gambling, to games to healthcare – that could build up a head of steam over the course of the year, even if the media continues to focus on the ‘digital wallet.’

Apple reportedly has plans to launch two new iPad models next year according to a recent report. Set to be unveiled at a press conference in January, the two new iPads will join Apple’s iPad 2 to create an iPhone like tablet lineup. The iPad 2 will remain available at an entry-level price point, DigiTimes claimed citing unnamed industry sources, while new mid-range and high-end iPad models will launch early in 2012. Both new iPads will feature dual-LED backlit 9.7-inch displays with a resolution of 2,048 x 1,536 pixels. It is unclear what features might distinguish the new mid-range iPad from the high-end model. The report also claims that Apple’s rumored 7.85-inch iPad will not be among the models to launch early next year. Wedge Partners analyst Brian Blair recently said in a note to investors that Apple would continue to sell the iPad 2 at a lower price point following the launch of its next-generation tablet model.

UPDATE: Loop Insight’s Jim Dalrymple noted that according to his sources, Apple has no plans to unveil an iPad 3 at the iWorld expo in January as noted in DigiTimes’s report.

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Global shipments of low-cost Android smartphones are expected to explode over the next four years. A new report from market intelligence firm In-Stat suggests that annual shipments of sub-$150 Android phones will reach 339 million units in 2015. In-Stat says that consumers in the market for smartphones with such a low unsubsidized cost only have one option — Android — leaving current (Symbian) and future (Nokia’s secret new OS) platforms high and dry. Even in 2013, however, In-Stat views fragmentation as an issue and says the spec requirements of newer Android builds like Android 4.0 Ice Cream Sandwich will keep it off low-end phones. Read on for more.

“The low-cost Android handset segment will cause some fragmentation in the Android platform,” said In-Stat Research Director Allen Nogee in a statement. “Most low-cost Android smartphones are likely to be released with Android 2.2 or 2.3, since these versions are a good blend of features with modest memory and processor usage. The Ice Cream Sandwich (Android 4.0) step-up in memory and processor demands makes this release less attractive for low-cost Android devices.”

In-Stat’s Less is More: The Worldwide Emergence of Low-Cost Android Smartphones report notes that this segment of the smartphone market will generally stick to EDGE networks in the coming years, and processors speeds are likely to remain at 600MHz or less, as processors in this range can be purchased from chip manufacturers for less than $10. The firm also notes that smaller smartphone vendors may also purchase components from the “gray market” to save on costs associated with the licensing fees, royalties and taxes larger manufacturers pay on their products.

Nokia on Tuesday unveiled its first two Windows Phones, a sleek high-end smartphone dubbed Lumia 800 and an affordable model called the Lumia 710. The latter is a mid-level handset that will retail for €270 abroad before taxes and subsidies. While it doesn’t have the sleek unibody architecture of the 800, it certainly packs a fair amount of bang for the buck. Starting things off, the Lumia 710 features a 1.4GHz Snapdragon processor that makes navigating the UI a fantastic experience. That’s right, a €270 smartphone with a 1.4GHz Snapdragon. Read on for more and be sure to check out our hands-on gallery below.

The construction of the case is nothing to write home about but the materials felt nice and solid, and the interchangeable case-backs available in a variety of colors are a nice touch. The display is a 3.7-inch ClearBlack panel that is impressive for a high-end phone, let alone a mid-range device; colors pop and the blacks are remarkably deep.

In the end, this isn’t a phone that will knock any socks off, but it’s not meant to be. This is definitely a phone that can resonate among less demanding smartphone owners, and subsidized pricing will be beyond attainable. Let’s just hope Nokia decides to put a significant marketing effort behind the handset — something that other manufacturers seemingly haven’t been willing to do with their Windows Phones.

Apple is preparing to launch a new, less expensive iPhone 4 model that will become available at the end of September alongside the iPhone 5, Reuters reported on Tuesday. Citing multiple anonymous sources, the news organization says that the retooled iPhone 4 will feature a smaller 8GB flash drive manufactured by an unnamed South Korean company. Apple has sourced flash drives for its current iPhone models from Toshiba and Samsung. Reuters also contradicts recent reports that the iPhone 5 will launch in early October, writing instead that Apple is “targeting an end-September launch for the next-generation iPhone 5.” The report restates numerous others that claim the iPhone 5 will feature a larger display, a new antenna design and an 8-megapixel camera.

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VIZIO on Monday evening announced that its affordable 8-inch VIZIO Tablet is now available from numerous retailers nationwide. The Gingerbread-powered device is VIZIO’s first foray into the tablet space, and while the slate’s specs aren’t cutting edge, it’s unsubsidized $299 price tag makes it a great option for tablet buyers on a budget. Spec highlights include an 8-inch 1024 x 768-pixel display, Android 2.3.2 Gingerbread, 2GB of storage and support for up to 32GB of removable storage, a 1GHz processor, 512MB of RAM and a front-facing VGA camera for video chats. “VIZIO set out to build an innovative tablet that breaks new ground and addresses the gaps in current offerings in the market,” said VIZIO CTO Matt McRae in a statement. “The VIZIO Tablet offers a superior multimedia experience with its three speaker design, home theater integration with IR, and a perfect size for typing, eBooks, gaming and portability. These innovations and our ground breaking price push the category forward and deliver on our brand promise of Entertainment Freedom for All.” VIZIO’s 8-inch tablet is now available at Sam’s Club, Walmart, Costco, Amazon and other VIZIO retailers across the country for under $300. VIZIO’s full press release follows below.

VIZIO’s New 8″ Tablet Delivers Knock Out Video, Audio and App-Based Entertainment at Sub-$300 Price Point

• VIZIO Tablet to shake up the marketplace by offering intuitive tablet experience at a price point that extends availability to the masses
• Unique three-speaker design delivers stereo audio in both landscape and portrait modes
• Control Your Entire Home Theater with the VIZIO Tablet’s built-in universal remote control app
• Built-in 802.11n WiFi and Bluetooth® capabilities offer optimum connectivity with multiple devices

IRVINE, Calif., Aug. 8, 2011 /PRNewswire/ – VIZIO, America’s #1 LCD HDTV company, announced today the new VIZIO 8″ Tablet with WiFi is arriving at retailers nationwide.  As part of VIZIO’s continued commitment to deliver great technology at a superior value, the sleek, feature-filled, Android-powered VIZIO Tablet is now available at Sam’s Club, Walmart, Costco, Amazon, and other VIZIO retailers at a breakthrough price of $299.

The VIZIO Tablet features VIZIO Internet Apps® Plus which combines the latest technologies with a unified, easy-to-use and fun user interface across select future VIZIO HDTV’s, Blu-ray® players and other devices — further differentiating the sleek VIZIO Tablet.  In addition, the new Tablet is able to control nearly every element of a user’s home theater with a universal remote app and includes a built-in HDMI port with HDCP support for content protected HD playback on the big screen.

“We are excited that VIZIO is listening, once again, to what the marketplace is asking for with a high performance sub $300 Tablet,” said Tim Farmer, Costco.  ”VIZIO’s reputation is built on affordable technology and entertainment and this product is expected to generate a strong consumer response.”

By offering cutting edge technology and exceptional features at a competitive category price, the VIZIO Tablet is ideal for a wide range of users.  With support for Adobe® Flash®, casual gamers, movie, TV and music enthusiasts are able to enjoy rich content and applications on the go.  It also comes equipped with a unique three-speaker configuration, strategically placed for stereo sound in landscape or portrait mode.

Additionally, parents looking to entertain their children on-the-go can quickly access the Android Market™ which gives access to hundreds of thousands of apps, including educational programs, games and eBooks.**

With back-to-school season in full swing, students will also find the sleek VIZIO Tablet an ideal and fun compliment to a busy year as it makes checking email, news and social networks as simple as ever.  Multiple storage options make saving assignments and downloading music a breeze with a MicroSD™ slot that allows consumers the freedom to expand memory up to 32GB for optimal organization and entertainment.

“VIZIO set out to build an innovative tablet that breaks new ground and addresses the gaps in current offerings in the market,” said Matt McRae, Chief Technology Officer, VIZIO. “The VIZIO Tablet offers a superior multimedia experience with its three speaker design, home theater integration with IR, and a perfect size for typing, eBooks, gaming and portability.  These innovations and our ground breaking price push the category forward and deliver on our brand promise of Entertainment Freedom for All.”

Apple has quietly launched a new entry-level iMac that targets education. The new model features a 21.5-inch display like the current base iMac, but the specs are dialed down in order to push pricing to a slightly more attainable starting point. Highlights include a 3.1GHz Intel Core i3 dual-core processor, 2GB of DDR3 RAM, a 250GB hard drive and an AMD Radeon HD 6750 GPU. Pricing starts at $999, 11% higher than the last iMac aimed at the education market, and the new model is available immediately to education customers on Apple’s website.

While the Daytona 500 kicks off a race to the top each year in the NASCAR Sprint Cup Series, the Nokia 500 is a race to the bottom. Nokia on Monday announced a new Symbian-powered smartphone that will aggressively attack emerging markets and smartphone users on a budget. The €150 ($217) Nokia 500 costs about what most popular smartphones do after subsidies, and it features specs we’re not used to seeing on entry-level devices. Highlights include a 1GHz processor, a 3.2-inch 640 x 360-pixel touchscreen display, a 5-megapixel camera, 2GB of storage and HSPA data. It also weighs just 93 grams, making it the lightest Symbian smartphone to date. As attractive as this handset could be in the low-end market, it begs the question: how long will it be until Nokia can attack young demographics and emerging markets this aggressively with entry-level smartphones powered by Microsoft’s Windows Phone OS? Nokia CEO Stephen Elop has said on numerous occasions that Nokia will be able to push affordable Windows Phones out to market very quickly, but €150 before subsidies is not an easy price point to hit. Nokia did not specify a launch date for the Nokia 500, saying only that it will be available before the end of the year. A pair of videos showcasing the new Nokia 500 follow below.

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Images of what is claimed to be an entry-level iPhone 4 prototype have surfaced online courtesy of a site called Tinthe. The same site in the past published photos of an engineering sample white iPhone that featured what is said to have been a very early test build of iOS 4, in addition to having the white plastic MacBook before announcement and release. The iPhone this time around appears to be an iPhone 4-like device, except the user that uploaded the photos claims it’s more of an “iPhone 4 lite” with plastic casing on the front and rear opposed to the glass exterior the current model features. From the photos however, this to me looks like a pre-production white iPhone 4 at best, and at the very worst, an aftermarket conversion kit commonly found on the streets of China and online. Additionally, the phone looks like it’s jailbroken which wouldn’t make much sense. Lastly, we exclusively reported that Apple would be selling its least expensive iPhone product, the iPhone 3GS, alongside the iPhone 4 and soon-to-be introduced iPhone 5. Why would Apple want to have a lower-cost iPhone 4 that looked like the company’s now high-end — and soon to be mid-end — iPhone 4? If you’re still not convinced that this product is either not ever being released, or is an aftermarket creation, there are a few more photos after the break for you.

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Apple has inked deals with numerous additional parts suppliers for its upcoming iPad refresh according to a new report from DigiTimes, further supporting the notion that the tech giant plans to unveil a new version of its market-leading tablet later this year. Citing industry sources, the report claims Taiwan-based component manufacturers including Novatek Microelectronics, Richtek Technology, Capella Microsystems and Integrated Memory Logic have been awarded contracts to supply integrated circuits for the iPad 3. Contrary to previous speculation that Apple’s next iPad would be a high-end “Pro” model, DigiTimes states that Apple is seeking to utilize lower cost parts from Taiwanese suppliers in order to “compete with an array of tablet PCs to be launched by rivals in the second half of 2011.” A more likely scenario, however, is that Apple may simply be looking to offset the added expense of the upcoming iPad’s Retina Display with cheaper circuits. Such a move could allow the Cupertino-based company to launch its next-generation iPad at the iPad 2′s current price points. Apple is expected to unveil its new iPad this fall alongside the iPhone 5.

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Samsung’s newest budget Android phone is now available in the U.S. from T-Mobile. The Samsung Dart is a Froyo phone that sports a 3.14-inch QVGA display, a 3-megapixel camera with video capture support, 512MB of internal memory, microSDHC support up to 32GB and a 1,200 mAh battery. The specs clearly seem a bit dated, but for the low price of free on contract, this is a great budget Android phone for teens and first-time smartphone buyers.

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Budget Android handsets are poised to takeoff in 2011, a new report from Digitimes suggests. The firm states that it expects 20 million to 25 million entry-level Android handsets  – defined as devices priced below $150 – will be sold globally in 2011. That figure is up from the 2.5 million to 3 million that were sold in 2010. Digitimes suggests that chips designed in China and Taiwan will drive white box OEMs to create budget-conscious handsets that will be attractive in emerging markets. An estimated 10 million to 13 million of those handsets are expected to be sold in China alone. Digitimes is known for having a mixed track record, but we do know that Android handsets — such as LG’s Optimus — were priced in the $100 range on many U.S. carriers. Similarly, last night Boost Mobile announced its new $179.99 Samsung Galaxy Prevail handset, which will be an attractive option for prepaid buyers.

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We know, we know — how can we possibly get excited about an upcoming Symbian smartphone from Nokia when the OS is currently sitting on death row awaiting execution? The answer, unfortunately, is that we can’t. Typical consumers likely won’t share the same sentiment, however — especially those looking for entry-level smartphones on the cheap. For the budget-conscious crowd that isn’t at all OS-conscious, we offer up your first look at the Nokia C5-04. Little is known about the upcoming c5-04, but the listing on the Bluetooth SIG site notes that it is headed to the North American market. Add to that the unmistakable presence of a T-Mobile logo on the face of the phone and it’s pretty safe to say it’s destined for T-Mobile USA. Specs are expected to be in line with the C5-03, which is anything but impressive but very affordable.

Thanks, Rajat

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As Verizon Wireless continues to expand its Android lineup beyond DROID-branded devices, we’re seeing some nice inexpensive options from Big Red… and it doesn’t get any less expensive than free. We’ve known for some time that the LG Vortex — a CDMA version of the T-Mobile Optimus T — was on its way to to Verizon. Now, we have official confirmation of the Vortex’s imminent launch thanks to an appearance on the Verizon website above a “coming soon” label. What’s more, Engadget Mobile reports that the upcoming smartphone will be available for free on contract. It’s not clear if this is just promotional pricing for the holidays or if the Vortex will be free for good, but it’s definitely a solid deal on a perfectly capable Android Phone. The LG Vortex is an entry-level Android 2.2 device with a 600MHz processor, a 3.2-megapixel camera and a 320 x 480-pixel touchscreen display.

[Via Engadget Mobile]

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Just like we told you late last month, the Samsung Rogue u960 and the Intensity u450 are now available from Verizon Wireless. The Rogue features a 3.1-inch 800×480 AMOLED touchscreen display, slide-out QWERTY keyboard, 3 megapixel camera with flash and camcorder, EV-DO Rev. A connectivity, microSDHC support, 3.5mm headphone jack, Bluetooth, GPS and Sammy’s TouchWiz interface with new social networking widgets. The Intensity is Samsung’s new entry level offering with a 2.1-inch 176×220 color display, side slide-out QWERTY keyboard, 1xRTT connectivity, 1.3 megapixel camera, Bluetooth, GPS, microSDHC support and a 2.5mm headset jack. The Rogue will set you a back $99.99 after a $100 mail-in rebate and 2-year contract. The Intensity in “Grey” (yes, according to VZW the color is Grey, like Lady Jane) is $29.99 after a $50 mail-in rebate and a 2-year contract while the Flamingo Red version is free after a $79.99 instant online discount.

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