Cheap Smartphone Tsunami Coming

Consultants from Deloitte are predicting that 2012 will be the year of the “dumb” smartphone. The rising popularity of smartphones coupled with the decreasing cost of components is leading to a flurry of new smartphones that will hit the market this year and cost less than $100. However, Deloitte reports that these affordable versions will lack many of the bells and whistles that we’ve come to expect and feature mainly touch screens, WIFI, cameras, e-mail, instant messaging, and full keyboards as the smartphone basics.

Deloitte wrote, “Many consumers, particularly middle majority adopters, are likely to consider phones as smart if they have touch screens or full keyboards and not what intangible OS is under the hood.”  Most of the phones will also lack 3G capability and instead run on slower data networks such as GRPS and EDGE.

As smartphone components continue to become more affordable, Deloitte predicts that these lower price point models will slowly add more advanced features and become “smarter.”  They also believe that the target segment for the phones is developing markets, but the phones will also appeal to more advanced markets in a slow economy.  The consulting firm predicts that more than 300 million of these more affordable yet dumber phones will be sold in 2012.

Here’s how smartphone stocks reacted to the news:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $424.70,. They have traded in a 52-week range of $310.50 to $427.75. Volume today was 94,572 shares versus a 3-month average volume of 13,663,200 shares. The company’s trailing P/E is 15.34, while trailing earnings are $27.68 per share.

Motorola, Inc. (NYSE:MMI): MMI shares recently traded at $38.55,. They have traded in a 52-week range of $20.77 to $39.20. Volume today was 1,000 shares versus a 3-month average volume of 3,141,360 shares. The company’s trailing earnings are $-0.30 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $628.58,. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 17,997 shares versus a 3-month average volume of 2,867,150 shares. The company’s trailing P/E is 21.43, while trailing earnings are $29.34 per share.

Nokia Corporation (NYSE:NOK): NOK shares recently traded at $5.64,. They have traded in a 52-week range of $4.46 to $11.75. Volume today was 1,951,689 shares versus a 3-month average volume of 30,867,400 shares. The company’s trailing P/E is 24.74, while trailing earnings are $0.23 per share.

Microsoft Corporation (NASDAQ:MSFT): MSFT shares recently traded at $28.25,. They have traded in a 52-week range of $23.65 to $29.46. Volume today was 25,020 shares versus a 3-month average volume of 53,584,000 shares. The company’s trailing P/E is 10.27, while trailing earnings are $2.75 per share.

Research In Motion Limited (NASDAQ:RIMM): RIMM shares recently traded at $17.47,. They have traded in a 52-week range of $12.45 to $70.54. Volume today was 434,574 shares versus a 3-month average volume of 22,398,500 shares. The company’s trailing P/E is 4.11, while trailing earnings are $4.25 per share.