Huawei has sacrificed on tech specs to be cost competitive. I wouldn't be surprised if future entry-level smartphones in the developing world hold the technology relatively constant and focus instead on getting the viable price point even lower, which is the reverse of what we see in the U.S. where the price stays relatively constant but the handset technology constantly improves.
http://www.eetimes.com/electronics-news/4231253/Spreadtrum-r...
To be clear, upfront costs have never been an issue for me, and I kind of wonder why the Android ecosystem has mostly failed to recognize this opportunity. Actually, I realize most people don't know how or want to bother with setting up proper SIP on a LAN (local SIP agent on router, etc.).
In 2012+, I could see $100-300 true smartphones, bought outright, or heavily subsidized by a non-telco (e.g. you get a BoA sponsored phone with an account with direct debit, or more realistically some more profitable, faster growing business like walmart).
Combine that with MVNO service through the sponsor, month to month. Or, free service if you make a minimum spend on another service -- e.g. free cellphone with $100/mo comcast, or if you spend >$1k/mo at Amazon.
Pretty similar to the Kindle now -- buy the device once (subsidized), make no or minimal ($79/yr) recurring payments, and then shift most of your discretionary and non-discretionary spending to that vendor.
He's probably smart enough not to give away his best predictions.