Are cheap phones getting better or good phones getting cheaper?

One plus recently released their budget smartphone ,the One Plus X.It has everything that had existed in the flagships of third quarter of 2014,be it a Super AMOLED screen,a 13 mp camera or a Snapdragon 801 processor.

It really amazes me how much smartphones are evolving.With it i am also amazed by the ridiculously low prices offered by some manufactures especially One Plus.The only problem being the horrendous invite system which fortunately the One Plus X will have for only 1 month after which it would be sold as a mass sale every week. That’s a move in the positive direction. Kudos 1+ !!

So why are the prices going down when the prices of every other commodity are gaining.

• The main reason behind this is the intense competition between manufacturers for market share in the budget smartphone department.Most of the middle class and lower-middle class families prefer to buy budget smartphones owing to their financial needs.There are also a class of people that are buying a smartphone for the first time.A person would always go for the best phone that his budget can buy.Let me give you an example:Consider a moto G3 and a samsung galaxy A5..The Moto G costs Rs 12000 and the A5 15000.A close look on the specs would actually reveal that the Moto G not only more powerful but also outclasses the A5 is every department possible.That is one of the reason why the Motorola is highly successful in developing countries like Brazil and India which have a larger number of lower-middle class population.
• To gain recognition would be another aspect.The One Plus brand was not heard of 2 years ago but now its on every bodies wishlist.The awesome people at One Plus decided to sell the phone at factory costs and their decision was well rewarded.Lets not forget about the bankrupt Motorola which was revived using a single device,Moto G and also some very good decisions taken by the people at google and Motorola.Did you every think what would happen to Motorola if the moto G had not gained recognition?
• Lets not forget that the mobile industry is already 10 years in the future.That just means to say that that they are currently testing technology for 10 years in the future.I am pretty sure that the specification of the next 10 iPhone would already have been decided subjected to further review.There is nothing to be surprised of.This is how every industry works. There is a particular time period during which a technology could be implemented.So given this,there is hardly any loss if the manufacturer is certain that his technology would become a hit in the future.Unfortunately there are also companies like Nokia that have written its own epitaph