The market for smart phones is definitely in a transitional phase,” Lars-Christian Weisswange, a vice president at Huawei’s Western European division, told SPIEGEL ONLINE. The company is betting that consumers will aim for affordable rather than luxury-brand smart phones.
I think Huawei may be onto something. They’re staking money on the commodity life cycle. According to this cycle the commodity moves from luxury good status to mass market to necessity through demand factors and scale effects on the supply side. Other commodities that have succumbed to this cycle include PCs, air travel and (unsmart) mobile phones.
More from the original article, which focuses on cheap smart phones as game-changers in the African market.