Sub-$15 Mobile Phones Could Bow In 2006: Infineon ExecSub-$15 Mobile Phones Could Bow In 2006: Infineon Exec

BANGALORE, India — GSM-based mobile handsets using Infineon Technologies' low-cost chip platform will hit the market in the first quarter of 2006, the company claimed, adding that a tie-up with handset makers will be announced in a matter of weeks.

Such phones should be available at a retail price of just above $20. The Munich Germany, company is working to further reduce the $20 reference platform cost by 15 percent later next year.

Infineon announced the low-cost platform in July 13. While Philips and Motorola have too announced similar initiatives, Infineon believes phones based on its platforms will hit the market before those of the other companies.

Also, the cost of phones based on Infineon’s technology will be lower than those using Motorola’s technology, said S. Surya, managing director, Infineon Technologies India Pvt. Ltd.

"There is phenomenal interest (from handset manufacturers) to make the ultra low-cost phones. At a $20 bill of materials cost, it is the cheapest platform in the market and phones based on our technology should be the cheapest and earliest to be available to subscribers," he said.