February 14, 2005

Motorola to sell phones for less than $40 in emerging markets

Motorola will enter emerging markets with ultra low-cost mobile phones aimed at 3 billion consumers who cannot yet afford to make wireless calls, reports Reuters.

"Some 80 percent of the world's population has mobile phone coverage, but only 25 percent have a mobile phone. That is 3 billion people who have coverage but cannot afford mobile communications," said Ben Soppitt, project manager of the emerging market handset programme at the GSM Association.

The cheapest phones today sell for around $50, but they are typically offered in limited volumes and include mostly old models. Mobile operators need a more steady supply of less expensive phones to address potential market demand. "

Related sort of: Microsoft Peabody phone will be aimed at mass market

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