Mass Production of Low Cost Mobile Phones Coming Soon

[Mike Temporale]

http://www.techtree.com/techtree/jsp/article.jsp?article_id=5006&cat_id=613

"Munich-based semiconductor manufacturer Infineon Technologies has developed a chip platform for ultra low-cost handsets, in effect laying the foundation for mass production of very low-cost mobile phones. The production costs for such mobile phones could be cut by nearly one half in future, from the current figure of around US $35 to below US $20. These costs include the complete mobile phone with its keypad, display and charging system, software for ensuring ease of use with the SMS and phone functions, packaging and documentation."

They're expecting to see the first batch of these low cost phones in the first half of 2006. Granted this is only for dumbphones right now. It's only a matter of time before they transfer this knowledge over to the high-end models. I can't wait to see a $50 Smartphone. Gosh, I'll take 4 of them please! :mrgreen:

[Mike Temporale]

http://www.techtree.com/techtree/jsp/article.jsp?article_id=5006&cat_id=613

"Munich-based semiconductor manufacturer Infineon Technologies has developed a chip platform for ultra low-cost handsets, in effect laying the foundation for mass production of very low-cost mobile phones. The production costs for such mobile phones could be cut by nearly one half in future, from the current figure of around US $35 to below US $20. These costs include the complete mobile phone with its keypad, display and charging system, software for ensuring ease of use with the SMS and phone functions, packaging and documentation."

They're expecting to see the first batch of these low cost phones in the first half of 2006. Granted this is only for dumbphones right now. It's only a matter of time before they transfer this knowledge over to the high-end models. I can't wait to see a $50 Smartphone. Gosh, I'll take 4 of them please! :mrgreen:

[Sven]

I'm a bit cynical here. What makes you think the technology that makes $35 phones go to $20 will make $350 phones go to $50.

[Mike Temporale]

My dreams.

Maybe $50 is a little off, but I'm interested in seeing anything that can cut the cost of today's hardware.

[Rocco Augusto]

i always predicted phone prices to go down in the US when they developed wifi technology in phones that would let you switch bettwen tower coverage to voip whenever you came in distance of a hotspot. there has been several stories of experiments with technology like this in the magazine 'telephony' and elsewhere on the internet.

when you have phones that do that it would save the carriers tons of money since individuals would not be using their towers as much but they could still charge the same price for their plans hence making them able to drop the price of expensive phones since they would be making that money up 10 folds within a 1-2 year contract.

also right now the big 5 in the US are getting VERY competitive on their pricing. T-Mobile introduced the nation wide 1000 anytime minute plan with unlimited N/W for only $39.99 a month. Cingular is giving away unlimited MMS for a year with the purchase of their MediaBasic feature. Sprint has just started 6pm N/W for $10 a month. Nextel has a unlimited usage plan with data features and direct connect (push to talk) for $129.99 a month. Verizon is doing unlimited 'IN' sms/mms plans.

Big things are happening in the wireless industry right now. A move to less expensive phones wouldn't suprise me. Even if they didn't drop the price of a $300USD smartphone down to $50USD you still might see it drop down to $100-$150USD.

-opti-

[Sven]

Originally Posted by optikalsaint

Even if they didn't drop the price of a $300USD smartphone down to $50USD you still might see it drop down to $100-$150USD.

-opti-

They are already giving them away for nothing to $100 (with a contract). What more do you want? I suppose you want to just buy a top end phone for $100 and subscribe to a provider with no contract. That doesn't seem to be beneficial to the carrier. [There's that cynicism again]

[Santa Fe]

This finding from another post "According to The 2004 Sprint Wireless Courtesy Report, 80 percent of adults surveyed say people are less courteous when using wireless phones today than they were five years ago" and this topic's quote "in effect laying the foundation for mass production of very low-cost mobile phones" seems to predict more bad behavior.

[Rocco Augusto]

Originally Posted by sven

They are already giving them away for nothing to $100 (with a contract). What more do you want? I suppose you want to just buy a top end phone for $100 and subscribe to a provider with no contract. That doesn't seem to be beneficial to the carrier. [There's that cynicism again]

id love to know which carrier you are using that gives away a smartphone for nothing to $100. id love to get a phone with them. i know there are times when they will run some crazy deals such as Best Buys $50 MPx220 when it was launched but the problems with that is that those are promotional deals. those arent the phones everyday price.

right now the 5600 is going for $249.99 on cingular with a two year contract and you get a $50.00 mail in rebate (only if you add the unlimited data plan). sure that brings the phone down to $199 but only %20 of all individuals cash in or receive mail in rebates.

i would just love to see them offer less expensive smartphones so individuals that have always wanted one but couldn't afford the steep price would be able to grab one up.

-opti-

[Mike Temporale]

Originally Posted by optikalsaint

i would just love to see them offer less expensive smartphones so individuals that have always wanted one but couldn't afford the steep price would be able to grab one up.

-opti-

Orange offers the C550 and the C500 for free with a contract. That's pretty darn good if you ask me. Of course, you have to live in the UK.

[Sven]

Originally Posted by optikalsaint

[id love to know which carrier you are using that gives away a smartphone for nothing to $100.

Look on the Smartphone Thoughts front page. That $100 SMT5600 has been there since two days after I got mine for $250. It's a Cingular contract I believe.

Punch SMT5600 in your search engine. Here's one for nuthin' http://www.smt-5600.com/