Mobile phone chip maker said the price will drop to $20 in 07 years

According to foreign media reports, the number of chip manufacturer is expected on Tuesday, the next few years mobile phone prices will show a sharp decline, priced at $20, the first mobile phone is expected in 2007 listed.

Infineon platform project vice president of the Khost Pula (Horst Pratsch) - Shi said that in the future mobile phone may even cost $10, but the mainstream mobile phone manufacturers are estimated to do so, because of concerns about the use of low-cost components may be detrimental to their own brand image. In fact, low-cost mobile phone market has become one of the main driving force in 2005, such as Motorola and other companies have launched a price of less than $50 product.

In order to reduce manufacturing costs, Infineon and PHILPS are trying to integrate the main features of the phone to a single chip, the cost of about $5. This will lead to a significant reduction in the use of mobile phone manufacturers parts. Plush said that the current assembly of mobile phones need to use about 150 parts, in 2007 can be reduced to about 50. Infineon said on July that it will sell a low-cost mobile phone platform from early 2006, the total number of components will be less than 100, the cost will be less than $20.

Plush said, taking into account the above factors, the future will be a sharp decline in the cost of mobile phones. "It is certain that 2007 will fall below $20," he said." It is also expected that as the cost dropped to $20, the wholesale price of mobile phones will be reduced to $20 or less.

PHILPS also said that by 2008, the company will be able to provide a new product to mobile phone manufacturers, so that the phone cost less than $15. Analysts expect this year's global mobile phone sales will reach 810 million, higher than last year's 680 million. At present, the total global mobile phone users are close to 2 billion.