15 replies to this topic

[skyymaster]

Mtrader,

I did not say that the US was in recession. I just asked if folks believe that smart phones are recession proof. Meaning will PALM, AAPL and RIMM continue to do well in a recessionary envirionment.

I have seen poor as$ people in 3rd world countries with cell phones. How can they afford it when they can barely feed themselves and their kids? It's sick, but they will have a phone.

Thanks but smart phones are a tad more expensive then the run of the mill cell phone. I appreciate your response.

I understand that SP are expensive and these people are poor. So cell phones are expensive to these people but they still can't live without them. It is a toy. They need it. It makes them feel important.

[mss]

first thing mgrs will cut costs on is giving every new rep a Blackberry. RIMMs already eating it.

Consider that traveling is more costly than using smart phones to conduct your business. Therefore travel cost would go and smart phones might get more used. Some companies are already moving in this direction.
As to the RIMM price decline IMHO, it got over extended and a normal consolidation is occurring. Of course if earnings are bad then it will roll over.
Just my thoughts, but what the hell do I know.
mss

[Sentient Being]

A girl in my office was obviously of the new generation. Glued to her phone. Expensive global long distance packages, etc etc. I think their monthly bill was over 150 bucks, she 'needed' it. A about a year later her husband lost his job. She found out she could do with far less, they slashed their phone services. I suspect people will slash fancy phone services before they let go of their premium cable channels.

[Drano]

Poor people in third world countries have cell phones because there are no land lines. They are not a luxury. Often, in truly impoverished areas, ONE family will have a phone, and anyone who needs to use it pays them a small fee. There are a several of the non-profit groups that make micro-loans (typically $100-200) specifically to fund that kind of business. It's good for entire villages. In fact, there are villages in Africa that have managed to get themselves out of debt, because they were able to check prices for their agricultural products with several dealers instead of selling to just one, who would consistently low-ball (cheat) them on price. Don't judge people in totally different conditions by the standards of the U.S.

[jack]

I understand that SP are expensive and these people are poor. So cell phones are expensive to these people but they still can't live without them. It is a toy. They need it. It makes them feel important.

A little off topic but "dumb" cell phones are recession proof. Those kids you see in the third world
on "their" cell. No other phone infrastructure exists. It is a survival tool. In some african countries
you pay a street kid to use their phone. Her phone is owned by a handler. She saves enough to
get her own phone, gets beat, phone removed, start cycle again.

[skyymaster]

Poor people in third world countries have cell phones because there are no land lines. They are not a luxury. Often, in truly impoverished areas, ONE family will have a phone, and anyone who needs to use it pays them a small fee. There are a several of the non-profit groups that make micro-loans (typically $100-200) specifically to fund that kind of business. It's good for entire villages. In fact, there are villages in Africa that have managed to get themselves out of debt, because they were able to check prices for their agricultural products with several dealers instead of selling to just one, who would consistently low-ball (cheat) them on price.

Don't judge people in totally different conditions by the standards of the U.S.

Very good point Drano and Jack, the focus should really not be on the phone but the people using it.