$80 Android Phone Sells Like Hotcakes in Kenya

[amincd]

http://singularityhub.com/2011/08/16/80-android-phone-sells-like-hotcakes-in-kenya-the-world-next/

So far, this $80 smartphone has found its way into the hands of 350,000+ Kenyans, an impressive sales number in a country where 40% of the population lives on less than two dollars a day.

Here are the phone's stats:

http://www.gsmarena.com/huawei_u8150_ideos-3513.php

It could handle a thin bitcoin client.. One idea could be to install a client on them, charge them with $5 worth of BTC (45 cBTC at current rates), and sell them for $85.

[1714784082]

1714784082

[indicasteve]

We’ve seen smartphones adopt all kinds of medical technology, from digital stethoscopes to cancer diagnosis, and I’m hopeful that we’ll see similarly stunning med-tech reach even the remotest areas one day.

I'm calling bullshit on this one...

WTF is an 80 dollar phone?  My phone cost me 0$..BUT you have to sign up for a 3 yr contract where you have to give up your first born to pay for it....and that's in CANADA!

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

This whole article is bullshit without the OP stating the 'total cost of ownership'.

Gawd shit like this makes me so mad....

[dbitcoin]

Kenya population is 39,802,015 for 2009
350,000 is ~0,8%
Looks like this is Kenyans "rich middle class"

[amincd]

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

The phones are $80 without a contract:

http://www.washingtonpost.com/business/technology/the-land-rush-why-google-wont-bless-motorola-as-its-favorite-android/2011/08/19/gIQATi79OJ_story.html

An $80 handset is selling like hotcakes in Kenya with no contract.

[evoorhees]

If this is true, it's pretty darn exciting. Given that there's already a wonderful Android bitcoin client, there's nothing standing in the way of Kenyan's adopting the coin widely. They're already using the M-PESA system which has been amazing well-received. They're used to banking with their phone, and sending money to each other.

What language do they speak there, and is there a version of the Bitcoin page in that language?

[julz]

If this is true, it's pretty darn exciting. Given that there's already a wonderful Android bitcoin client, there's nothing standing in the way of Kenyan's adopting the coin widely. They're already using the M-PESA system which has been amazing well-received. They're used to banking with their phone, and sending money to each other.

What language do they speak there, and is there a version of the Bitcoin page in that language?

According to the cia factbook: English (official), Kiswahili (official), numerous indigenous languages

So.. looks ripe for it I guess!

[Jack of Diamonds]

We’ve seen smartphones adopt all kinds of medical technology, from digital stethoscopes to cancer diagnosis, and I’m hopeful that we’ll see similarly stunning med-tech reach even the remotest areas one day.

I'm calling bullshit on this one...

WTF is an 80 dollar phone?  My phone cost me 0$..BUT you have to sign up for a 3 yr contract where you have to give up your first born to pay for it....and that's in CANADA!

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

This whole article is bullshit without the OP stating the 'total cost of ownership'.

Gawd shit like this makes me so mad....

Kenya is not Canada. Kenya is a poor third world country.

The total cost of ownership is $80 dollars.
You can use a prepaid SIM card, you can use a contract, or just play around with it offline/surf the web by public WLANs, use Skype etc.

[bitplane]

They're $140 online.

[cypherdoc]

wow, this is exciting.  thanks.

[helloworld]

there's already a wonderful Android bitcoin client

Can you link to it so I can use the one you recommend?

[FreeMoney]

We’ve seen smartphones adopt all kinds of medical technology, from digital stethoscopes to cancer diagnosis, and I’m hopeful that we’ll see similarly stunning med-tech reach even the remotest areas one day.

I'm calling bullshit on this one...

WTF is an 80 dollar phone?  My phone cost me 0$..BUT you have to sign up for a 3 yr contract where you have to give up your first born to pay for it....and that's in CANADA!

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

This whole article is bullshit without the OP stating the 'total cost of ownership'.

Gawd shit like this makes me so mad....

Surely not BS. In kalifornia I got a decent smartphone for $125, maybe $150, no contract required, I bought minutes and data from some second rate provider cheap, can stop anytime and keep the phone. There should be a $50 smartphone already imo, $80 is far from unbelievable.

[BusmasterDMA]

We’ve seen smartphones adopt all kinds of medical technology, from digital stethoscopes to cancer diagnosis, and I’m hopeful that we’ll see similarly stunning med-tech reach even the remotest areas one day.

I'm calling bullshit on this one...

WTF is an 80 dollar phone?  My phone cost me 0$..BUT you have to sign up for a 3 yr contract where you have to give up your first born to pay for it....and that's in CANADA!

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

This whole article is bullshit without the OP stating the 'total cost of ownership'.

Gawd shit like this makes me so mad....

Surely not BS. In kalifornia I got a decent smartphone for $125, maybe $150, no contract required, I bought minutes and data from some second rate provider cheap, can stop anytime and keep the phone. There should be a $50 smartphone already imo, $80 is far from unbelievable.

Indeed. Fortune was writing of a $75 (retail) Android device within six months (of Dec 2010).
http://tech.fortune.cnn.com/2010/12/22/2011-will-be-the-year-android-explodes/

[BusmasterDMA]

there's already a wonderful Android bitcoin client

Can you link to it so I can use the one you recommend?

https://market.android.com/details?id=de.schildbach.wallet
I recommend only keeping a small amount on the device at any given time, to minimize damage in case of loss.

[helloworld]

there's already a wonderful Android bitcoin client

Can you link to it so I can use the one you recommend?

https://market.android.com/details?id=de.schildbach.wallet
I recommend only keeping a small amount on the device at any given time, to minimize damage in case of loss.

Thanks for the link, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

[Andreas Schildbach]

there's already a wonderful Android bitcoin client

Can you link to it so I can use the one you recommend?

https://market.android.com/details?id=de.schildbach.wallet
I recommend only keeping a small amount on the device at any given time, to minimize damage in case of loss.

Thanks for the link, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

Yes, this is the Bitcoin Wallet App that I started in March. And my name is Andreas.

[helloworld]

there's already a wonderful Android bitcoin client

Can you link to it so I can use the one you recommend?

https://market.android.com/details?id=de.schildbach.wallet
I recommend only keeping a small amount on the device at any given time, to minimize damage in case of loss.

Thanks for the link, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

Yes, this is the Bitcoin Wallet App that I started in March. And my name is Andreas.

Thanks for the reply, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

[defxor]

Thanks for the reply, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

Until he replies I can use the same terminology; Bitcoin Wallet is indeed a wonderful Android Bitcoin app. I've used it for quite some time.

[helloworld]

Thanks for the reply, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

Until he replies I can use the same terminology; Bitcoin Wallet is indeed a wonderful Android Bitcoin app. I've used it for quite some time.

Well, thanks everyone I am going to check this one out... it will feel good walking around knowing I have bitcoins in my pocket (and not just on a thumbdrive, but easily spendable bitcoins). Pity I can't walk to Meze Grill from here.

[julz]

I first guessed that someone who read this thread started this: http://www.bitbob.co.ke
(claming to be the first African Exchange - launching 'soon')

But looking at the whois for bitbob.co.ke - it was created on 2011-05-27  and has a Nairobi address..  (Alex Beavan)

Could still be a foreign run operation I suppose.. but good to see someone setting up some bitcoin infrastructure for Kenya anyway!

[Gabi]

We’ve seen smartphones adopt all kinds of medical technology, from digital stethoscopes to cancer diagnosis, and I’m hopeful that we’ll see similarly stunning med-tech reach even the remotest areas one day.

I'm calling bullshit on this one...

WTF is an 80 dollar phone?  My phone cost me 0$..BUT you have to sign up for a 3 yr contract where you have to give up your first born to pay for it....and that's in CANADA!

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

This whole article is bullshit without the OP stating the 'total cost of ownership'.

Gawd shit like this makes me so mad....

Wake up, the phone really cost only 80$. It's not an high end smartphone, why it should cost more than 80$?

[indicasteve]

I wasn't complaining about the phone cost.  Sure, $80 is a good price.  BUT, what the article didn't say was how much they are paying for their service contracts.  That is why an $80 phone doesn't cost $80.

If you think that when you buy a phone for $80 you can just use it for free anywhere you want, then perhaps it is you who needs to wake up. 

The purchase price of the phone is usually irrelevant to the total cost of ownership.  They could just give the dam things away and cover their costs in the service fees like they do here.

Well.. maybe these phones are like Skype VoIP phones that use the free WiFi down at the local  Starbucks...

[twobits]

We’ve seen smartphones adopt all kinds of medical technology, from digital stethoscopes to cancer diagnosis, and I’m hopeful that we’ll see similarly stunning med-tech reach even the remotest areas one day.

I'm calling bullshit on this one...

WTF is an 80 dollar phone?  My phone cost me 0$..BUT you have to sign up for a 3 yr contract where you have to give up your first born to pay for it....and that's in CANADA!

What kind of contract do these unfortunate soles have to subscribe to to get their $80 phone?

This whole article is bullshit without the OP stating the 'total cost of ownership'.

Gawd shit like this makes me so mad....

Surely not BS. In kalifornia I got a decent smartphone for $125, maybe $150, no contract required, I bought minutes and data from some second rate provider cheap, can stop anytime and keep the phone. There should be a $50 smartphone already imo, $80 is far from unbelievable.

Yeah, the whole phone subsidy system is a rip off.  Take the Optimus S,  they show is as having a list price of $499, and then give the subsidy from this price.  If I was to upgrade to it they want me to pay $199, sign a two year contract and pay $10 more a month then I am for my old htc toucpro.   They also claim they are losing money on this.   However,  you can outright buy the same hardware as the Optimus V for $120.    A friend just got that and a $25 a month plan with unlimited data  and texting  last month.    For me at least the numbers and claims dont add up,  they just inflate the retail prices shown on the subsidized phones way too much and then use those funny numbers in their other math, making it all untrustworthy.   I picked those two as they are effectivly from the same company just under different bransds, you can also get the same phone hardware as the Optimus M for $99.  This phone works great as a voip phone on wifi, and is better then the htc hero, so it is not really junk even for $100.


Good to see this types  phones availability for outright purchase of $80 though, hopefully it won't be limited to Kenya.

Seems people in the USA can get an $80 phone after all, wonder if it is the same one ( http://www.metropcs.com/Shop/PhoneDetails.aspx?ProductId=HWM835(Phones) )

[defxor]

BUT, what the article didn't say was how much they are paying for their service contracts.  That is why an $80 phone doesn't cost $80.

You do know the rest of the world is slightly bigger than the US, and that not everything in that "the rest of the World" works just the same as things work in the US?

This would be one of those things.

[Jack of Diamonds]

The purchase price of the phone is usually irrelevant to the total cost of ownership.  They could just give the dam things away and cover their costs in the service fees like they do here

Phone sales don't work like this in most countries. USA and Canada are exceptions.

In most of the world, you pay for a phone & walk out of the store. That's it. Cash in, phone out.
There is no 'contract'. A phone is sold as-is & not a long term 'lease' with monthly fees.

They are almost never SIM locked & people use reloadable prepaid cards.

You ought to travel more to see how things work in other places..
Canada+US make up only 4% of the world population which means you have yet to see 96%

[Gabi]

I wasn't complaining about the phone cost.  Sure, $80 is a good price.  BUT, what the article didn't say was how much they are paying for their service contracts.  That is why an $80 phone doesn't cost $80.

If you think that when you buy a phone for $80 you can just use it for free anywhere you want, then perhaps it is you who needs to wake up. 

The purchase price of the phone is usually irrelevant to the total cost of ownership.  They could just give the dam things away and cover their costs in the service fees like they do here.

Well.. maybe these phones are like Skype VoIP phones that use the free WiFi down at the local  Starbucks...

Ahem... when i buy a phone i buy it. No contracts or whatelse if i don't choose it. Sure, if i want i can buy it with a contracts (so i pay it later, or a bit every month or whatelse) but usually i don't. I go in the shop, i buy the phone and that's all.

But since you live in america you think america is the world? Sorry but it's not. I live in Europa and here things works as i said.

[evoorhees]

Thanks for the reply, although I would like evoohees to confirm that this is the one he was referring to, since there are a few of them available.

Yep that's the one, by Andreas. I absolutely love the app. In the Android store you can see there is a normal version and a "test net" version, both by the same author (Andreas).  Don't store a large amount of coins on your phone, but so far it's worked swimmingly for me.

[evoorhees]

In most of the world, you pay for a phone & walk out of the store. That's it. Cash in, phone out.
There is no 'contract'. A phone is sold as-is & not a long term 'lease' with monthly fees.

+1.  In most places, there is no such thing as a mobile phone contract. It is entirely possible to get an Android phone in the $100 range without a contract whatsoever in many places in the world.

[pazor]

does have someone contact to a smartphone dealer in kenya ?
is someone in the forum here from kenya ?

if not... how can bitcoin exploring the black continent ?

these are the major questions to answer first, then can be develope new ideas...

[defxor]

the black continent

o_O

But anyway. I verified last week, by talking to someone in the Kenyan M-PESA industry, that Bitcoin would indeed be a cheaper alternative to M-PESA for the consumers if the carriers will allow Bitcoin data in their networks.

[giszmo]

concerning the cheap android phones: i read somewhere that patent license costs are expected to exceed 100$ per device in the near future. That was very frustrating news for me as else I see no reason why Android prices should not drop to 30$.

[defxor]

i read somewhere that patent license costs are expected to exceed 100$ per device in the near future

Don't worry.

Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.

http://googleblog.blogspot.com/2011/08/supercharging-android-google-to-acquire.html

[ffuentes]

concerning the cheap android phones: i read somewhere that patent license costs are expected to exceed 100$ per device in the near future. That was very frustrating news for me as else I see no reason why Android prices should not drop to 30$.

Patents of Android? ¿? That would be so sad.

does have someone contact to a smartphone dealer in kenya ?
is someone in the forum here from kenya ?

if not... how can bitcoin exploring the black continent ?

these are the major questions to answer first, then can be develope new ideas...

You can read about on http://safaricom.co.ke (Data plans start from 2 dollars)

[cypherdoc]

the black continent

o_O

But anyway. I verified last week, by talking to someone in the Kenyan M-PESA industry, that Bitcoin would indeed be a cheaper alternative to M-PESA for the consumers if the carriers will allow Bitcoin data in their networks.

how can they stop it for smartphones with Internet?

[defxor]

how can they stop it for smartphones with Internet?

Because there's no concept of net neutrality.

[ffuentes]

how can they stop it for smartphones with Internet?

Because there's no concept of net neutrality.

You can stop a tcp port, but you can't stop other bitcoin apps. But actually I don't think that bitcoin is blocked in Safaricom net.

[defxor]

You can stop a tcp port, but you can't stop other bitcoin apps. But actually I don't think that bitcoin is blocked in Safaricom net.

I don't think anything is blocked, yet. If they want to, I know (really) that the cell network providers (Ericsson, Huawei etc) have deep packet inspection services that can identify and block Bitcoin traffic easily if the carriers wanted to.

[evoorhees]

You can stop a tcp port, but you can't stop other bitcoin apps. But actually I don't think that bitcoin is blocked in Safaricom net.

I don't think anything is blocked, yet. If they want to, I know (really) that the cell network providers (Ericsson, Huawei etc) have deep packet inspection services that can identify and block Bitcoin traffic easily if the carriers wanted to.

Doesn't this reveal a more serious problem? If carriers can block Bitcoin traffic, then what's stopping govs from pressuring them to do so? The general impression is that govs can't stop bitcoin without "shutting down the internet" but if carriers can do the blocking, then it would be quite easy for the gov to stop the coin.

[ffuentes]

You can stop a tcp port, but you can't stop other bitcoin apps. But actually I don't think that bitcoin is blocked in Safaricom net.

I don't think anything is blocked, yet. If they want to, I know (really) that the cell network providers (Ericsson, Huawei etc) have deep packet inspection services that can identify and block Bitcoin traffic easily if the carriers wanted to.

The only solution would be a client with data encryption and a bitcoin network compatible. Could be  a problem, but i don't think that Safaricom's even think in that.

[defxor]

Doesn't this reveal a more serious problem? If carriers can block Bitcoin traffic, then what's stopping govs from pressuring them to do so?

I'm expecting carriers in countries with no concept of net neutrality to start filter/interrupt Bitcoin traffic just as they are torrents, today. Bitcoin is even a lot easier, there's been no reason to use development resources on a so far nonexistent problem.