When it comes to the smartphone arena, North American countries and other developed nations are almost fully saturated. And the giant tech companies are fully aware of this. Apple, for one, has suffered from disappointing sales after it released the iPhone 5. Because of this so-called saturation, almost all of these giant tech companies are setting their eyes on the same thing: developing countries.
You can’t really blame Apple or Google for coming up with the same idea. After all, targeting developing nations to increase performance and profits is indeed the most logical step to take. RIM did it. Despite predictions that the BlackBerry manufacturer will eventually close down, RIM (now known as BlackBerry) is still hanging on to dear life. And thanks to its surprisingly good performance in developing countries, the company’s still around. But the question is: Is it right for these tech giants to target developing countries for profits?
Defining “Developing Countries”
You see, the reason why developing countries are called “developing” countries is because the most basic facilities which are abundant in developed nations like the USA, UK, Canada, and Australia, aren’t exactly present in the developing nations.
In the African continent, for example, 345 million people don’t have access to clean water. Why then would you sell smartphones to people in countries where even the most basic need like clean water isn’t even present? Where’s the logic in that?
If there’s one country that most tech companies are currently eyeing on, it’d probably be China. Why not? It’s a country full of potentials – huge population and promising economy. Combine these two factors and you’ve got the next big smartphone market.
Though high-end smartphones won’t exactly do well in this country, the low-price-high-sales formula may just work. Take Apple for example. If the rumors about a low-end, affordable iPhone Mini are true, such a product will most likely become a hit among developing countries, specifically China. A mid-level Apple phone will prove to be irresistible. And if that happens, it’ll be a huge game-changer for Apple in its battle against Google.
Then again, there’s the fact that people in developing countries have more problems to think of. And buying a business phone (more info) would be the least of your worries if you’re one of the 60 million people with no access to toilet, the 578 million hungry people in the Asian and Pacific region, or the 100 million homeless people worldwide.
Third-World Solution to First-World Problems
So what should these tech giants do to help these developing countries and increase profits at the same time?
Creating more job opportunities is one solution. If poor people in developing countries are given jobs by companies in developed countries, more people are able to afford the basic needs like food, clean water, and shelter. And if more people are given better state of living, they’d have better opportunities to buy products from developed nations. In other words, give to gain. It’s a third-world solution to first-world problems.