December 6, 2005
Chip makers drive race to $20 cellphones by 2007
Prices of mobile phones will drop sharply over coming years with $20 handsets available to consumers as early as 2007, chip companies said on Tuesday, reports Reuters.
"Mobile phones may even be produced as cheaply as $10, but the major phone vendors seem reluctant to do so because they will have to use cheap parts and the lower quality may hurt their brand image, said Horst Pratsch, vice president for Entry Platforms at German chip maker Infineon.
... "In 2007, we can do 50 components," he said, unveiling the next step of Infineon's roadmap to cheaper phones. The company said in July that by early 2006 it would start selling a low-cost phone platform with less than 100 components for handsets that cost less than $20 to produce, versus $35 now."
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