AUSTIN, Texas-A wireless handset with a $25 cost of production could come within the next two years, according to a recent survey conducted by Portelligent of its customers in the wireless and electronics industries.
Eighty percent of survey respondents reported a belief that a low-end GSM handset with a total bill-of-materials cost of $25 can be achieved within two years or less, while 51 percent believe this level can be reached within a year or less. In addition to electronic and mechanical components, the cost of the handset as presented in the survey was defined to include battery, testing, final assembly, software and Internet Protocol licensing, and product packaging.
“We have believed for some time, based on the trends in product design and component cost which we see in our product teardown analyses, that very low-cost cellular handsets will emerge in the next several years,” said David Carey, president of Portelligent. “We think this survey is significant in that it shows that a substantial majority of our customers seem to agree on the near-term reality of the $25 handset, as they represent diverse points of view within the electronics industry, including semiconductor and device makers, handset makers and wireless service providers. With the handset industry reaching maturity throughout the developed world, more economic cellular phone designs will be a key factor in securing the next billion wireless subscribers.”
