We like drooling over phones that seem to get more and more expensive every year, but that isn’t where the money is in our industry. Cheap phones that are sold by the millions with low margins are where the action is. Nokia for example, their ASP (average selling price) for Q1 2007 was 89 Euros, down from 103 Euros only 12 months prior. Whether analysts out there care or not, the truth of the situation is phones are turning into commodities. The race to create a device that will cost under $20 to the end consumer yet still yield a profit is on, who will win?
I can’t tell you, but Sony sure wants a piece of that pie as they’ve announced today in Dubai. Expect devices to be releasd begining 1Q 2008 and manufactured by the French company Sagem.