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August 19, 2005
Mobile handset makers goes ultracheap for developing countries
Some of the world's biggest cell phone makers are backing a new industry initiative to sell ultracheap cellphones to people in developing nations.
According to Ben Soppitt director of GSM trade group: "We tend to forget that four billion people have never made a phone call." Mobile phone industry is sees huge potential in handing over phones to this potentially large market.
Cheap phones marketed by Motorola, have already gone on sale in countries including India, which are selling for about $46 today. Such low-cost phone initiative is expected to ramp up sales substantially in populous countries such as India, Bangladesh and the Philippines.
Sales of inexpensive phones boost revenue at the cost of profit margins. However, lowering the price of a phone by just $20 in many poorer countries could increase its affordability by 43%, according to investment bank Lehman Brothers.
Posted by admin at August 19, 2005 02:03 PM