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The one-chip-design, a transition to a 65 nm production process as well as merged RF subsystem chips does not only reduce space required by a cellphone's main hardware components by about one third, it also decreases manufacturing cost substantially. Sources indicated that the reference board design based on Tavor will cost around $40 - including processor, flash memory, RF chips and a power management unit.

While the bill of materials may be reduced, we hear that Intel still will not be targeting the very low-end of the cellphone market, but may be aiming for the CDMA-based mainstream as soon as 3G WCDMA penetrates the mass market. Intel apparently will not offer Tavor designs for GSM-based networks.