I recently wrote about how Symbian is trying to reduce the bill of materials (BOM) of phones based on the Symbian OS. I commented how they may be chasing a moving target as all phone categories/ OS types reduce their bill of materials.

In the Ultra Low Cost Handset segment (ULCH) Silicon Laboratories have now produced the AeroPhone Single-Chip phone that enables phones to be built for less than $16.

At first sight this isn’t direct competition for Symbian (or Windows Mobile). This is a very basic phone targeted at emerging markets. There’s no 3G, no camera or other smartphone functionality.

However, this puts pressure on the BOM of all phone segments. Mobile phones are evolving to the point where they can be given away without network operator subsidies. This creates new opportunities for network operators to be more adventurous with tariffs. A very low (monthly) cost phone offering may end up competing against more expensive smartphones, especially in cases where the user doesn’t believe they want or need advanced services.

Related Articles:

• Is Symbian Chasing a Moving Target?

This entry was posted on Wednesday, July 12th, 2006 at 5:56 pm and is filed under Symbian, Windows Mobile, Mobile, Phones. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.