Philips is preparing ultra-low cost mobile phones by the end of this year. The initiative is aimed to make handsets more widely available, especially in developing countries. The goal is to deliver cell phones under $20 to fuel fast-growing demand in regions like China, India, Africa, South America and Eastern Europe.
The Nexperia cellular system platform — including integrated hardware and software constituting the electronics needed in a mobile phone — should drive GSM handset costs below $20, according to Thierry Laurent, Philips Semiconductors' executive vice president of business development. The long-term goal, said Laurent, is to drive down total handset cost to below $15 by 2008.