Armenia made headlines in the tech world again this week with the Yerevan-based firm Technology & Sciences Dynamics announcing the sale of its newest product: the Armphone. The launch of this device, the first entirely Armenian-produced smartphone follows the success which the company’s previous product, the Armtab (sold to the north-American market as the Minno Tablet) saw 2 years ago.
The Armphone, which went on sale last weekend, is only the 2nd native-built smartphone hailing from the former Soviet Union following the Russian Yotaphone 2, which was widely considered to be a flop. The 5 available models sell for between 150 to 300 USD.
With its basic model retailing at about 150 USD, the Armphone hopes to compete as a low-cost alternative to higher-end Android-compatible phones like your average Samsungs, HTCs in the CIS and other developing markets. The company has already announced plans to expand into the Russian, Kazakhstani, Ukrainian, Belarusian and Georgian markets, as well as further expansion into the EU. According to the CEO, plans are already afoot to open an Armphone store in Moscow.
Indeed, TSD’s American-Armenian founder, Vahan Shakaryan, has favourably compared the Armphone 5 which runs Android 5.1 and features a 5.2 inch full HD screen, with 3 GBs of ram and an 8.0 MP front camera as well as 4G and Wi-Fi connectivity with some of the more expensive Galaxy series Samsungs. The phone has also been customised for native Armenian apps, and smoothly runs Armenian keyboards and other software. Users can also customise their screens with high-quality backgrounds depicting Armenian scenes, or install unique Armenian ringtones.
The company will be facing some notable challenges in the near-future, however. The Armphone’s international marketability has been criticised as some users have taken to social media claiming that the phone’s modest performance does not justify its price.
Facebook user, Baykar Sepoyan, posted a comparison chart between the Armphone 5 and its Chinese competitor, the LEAGOO Elite 1 which retails at 160 USD, noting with frustration that despite identical stats, the Armphone 5 costs almost twice as much as the latter.
Others have also picked at the branding, which some had criticised for being an unimaginative “armeno-centric” marketing strategy, potentially hurting the product’s scalability when marketing to non-Armenian consumers.
Foreign observers have questioned whether the entire project was anything but a gimmick echoing soviet-era pride in autarchy reminiscent of locally made ErAz cars, and Nairi computers in the 1970s and 1980s.
The Armphone’s pricing issues may have more to do with economies of scale, as the unit price would certainly go down when the company begins exporting in larger numbers. Other social media users have signalled their interest in buying the phone despite the availability of cheaper alternatives because while still performing admirably, the fact that the phone is assembled entirely in Armenia, and sustains high-skilled tech careers in Armenia is attractive enough to consumers.
Shakaryan isn’t content with banking on consumer’s sense of Armenian pride alone, however, insisting that the Armphone is a well-engineered smartphone. “It is important to note that our product is high quality and we stand behind and take responsibility for the quality of our product,” he said in a statement; “We produce in Armenia, we are with our consumers and take full responsibility for every step, from production to customer service.”
Armenian customers seem to be content with this, though, as the phone’s launch has generated a lot of interest, both in Armenia and abroad. Large queues reminiscent of iPhone launches have been forming around the Armphone’s store in Yerevan’s Rossya Mall since its launch as many scramble to get their hands on the new smartphone.
Mariam, who bought one of the first units since the phone launched is very happy with her purchase. She has already installed some of her favourite Armenian apps like menu.am, and GG Taxi (a sort of Armenian Uber). Though she is very proud of this Armenian design, she is genuinely satisfied with the phone’s performance, saying “I love this phone, it works so smoothly, it looks beautiful, AND it’s Armenian”.
Raffi Elliott
