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Ultra-low-cost handset sales could total 50M by end of 2007

BOSTON—Rapid product development among semiconductor players could pave the way for nearly 50 million ultra low cost handset shipments by the end of next year, according to a new report from research firm Strategy Analytics.

“In addition to Texas Instruments and Infineon, other chipmakers, including Freescale, Qualcomm and Philips, have rapidly made single chip solutions available,” said Chris Ambrosio, director of the wireless device strategies service at Strategy Analytics. “These new products will meet the dual needs of driving new subscriber growth in emerging markets and creating a stronger profit opportunity in entry-tier segments for small handset vendors.”

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The report found Motorola Inc. continues to be the leader in the segment with an 80-percent share of ULCH shipments. The report also predicts that color, FM radio and speaker phone capability will be common features on ULCH devices by 2011.

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