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Notes on tech

Notes on technology, business, enterpreneurship, economy, markets along with interesting general tidbits.

The $20 cellphone cometh

8/09/2005 11:43:00 PM, posted by anand

The Indian branch of Texas Instruments has successfully created a single chip cellphone. They combined memory, logic, radio and power management functions in just one chip. Not only does this cut down the power requirements for the device, it also brings down the overall cost of the phone. This is a huge boon for developing countries like India and China.

Earlier this year, Motorola signed a contract with the GSM Association to supply the emerging markets with a $40 handset. It will be interesting to check out the mobile subscriber growth rate once these low cost handsets start hitting the market.

My take on it is that the people at the metaphorical bottom of the pyramid, do care about the one time costs, but not as much as the recurring subscription costs that they would have to bear once they own a mobile device.

Here is Texas Instrument's press release on the breakthrough.
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