Rants And Ramblings About Mobile Technology
Anders Borg writing about the fun and crazy world of mobile and Internet service technologies.
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Thursday, March 01, 2007
Cheap phones to get cheaper
- Lowend phones are pretty darn inexpensive to produce ($5!)
- Why does Motorola talk about what the phones actually cost? Who really needs to know, considering the risk of mentioning it?
Cutting the production cost to $5 per handset is impressive, and also indicates providers of components and software will get even less. As even low-end phones need a full suite of embedded software there are not many per-unit cents to negotiate per provider.
Quote: Zander said Motorola would go so far as turning down business if a deal meant profits could be hurt.
This is the tough gray area of possibly losing deals to competitors and being able to survive financially.
