Ambitious plan a little-known company Taiwan semiconductor to grow cell phone sales of semiconductors in China this year foreshadows what analysts consider a booming low-end phones not only in the world's largest market, but also in other countries where not everyone wants an iPhone.
Semiconductor freedom anticipates a boom in its chip handset within the second half of the year as the 9-year-old uses a rack of patents and his Board made-in-Taiwan traditional: low production costs, which translate into lower prices for end users. That business will target China and "get big" this year, said Angela Luan, Assistant to the CFO.
Poorer countries such as China and India, where young people need phones but cannot always afford the latest model of US $ 300-$ 750, and the richest regions of East Asia, where older people do not want to always master smartphones are expected to increase demand for basic phones.
It is not surprising that LG Electronics, Nokia, Samsung and small local laptop makers are already doing a move in the market, analysts say. Chip makers freedom and his rival Taiwan MediaTek are positioned to sell chip brand not creators of low-end mobile phones.
"That is a business growth and capitalises on a huge market to satisfy the basic needs," said Leong Wai Ho, regional economist at Barclays Capital Singapore. "The market is growing explosively. The perception is that mean low-end not profitable, but that's not true. "
Phone semiconductors are now about 5 percent of the revenue of liberty, Show the rest coming primarily from chip for video and digital.
Mediatek and freedom down costs to produce masse after the finalisation of a technology, a process of development so far has maintained the small field, said a head section with the Industrial Development Bureau of Ministry economic Taiwan nicknamed Tsai. "There's a definite level of difficulty, so not only that any small business can break," he said.
These savings will translate into more affordable new phones, including feature phones with cameras and music players. Some phones can cost as little as $ 40-$ 50 each, as consumers in LDCs cannot afford more, said Peng Chien-hang, an analyst with DigiTimes research in Taipei.
China is a logical starting point because of its size. "Is the number one in terms of volumes," said Duncan Clark, Chairman, BDA China consulting firm in Beijing.
Number of mobile phone users in China more than 800 million, but because the country is relatively poor they have avoided more expensive 3 G Smartphone that cost more than $ 300 apiece. Mobile phone users in India amounted to approximately 750 million this month, with 100 million euros in rural areas.
Luan freedom is set to release the chips for Android phones, non-3 G feature phones and Smartphones, said. It will seek the rights from Google Android phone, he said. Worldwide shipments of products mobile freedom are forecast to grow 40-50% of this quarter against the last three months of 2010.
2009, larger Chips from MediaTek fed already most mobile phones in China. The company has already stared pushing new chip with support of an archive to download applications to mobile subscribers in China.
MediaTek was behind a drop in prices of phone in China, and its global market share of the country has designed its partnership with technology giants including Microsoft and Google.
Fresh competition with freedom should continue the drive to lower prices and better phones for users throughout the developing world.
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