Business   

Philips plans cheap mobile handsets

Special Correspondent

The company moves to state-of-the-art facility in Bangalore

BANGALORE: Netherlands-headquartered Royal Philips Electronics on Friday joined the ranks of companies that are making cheap mobile phones for as low as Rs. 1,000, setting the stage for intense competition in India's booming telecom market and eventually driving down costs to make mobility much more affordable to prospective customers.

Europe's largest electronics firm Philips has disclosed that an India-specific ultra low cost mobile handset model is in the pipeline that would be priced at below Rs. 1,000 ($20) and slated for release some time next year.

Cell-phone made with the Philips' Nexperia platform is now available in China with a price tag of $25. "It is possible to bring its cost down to $20 next year,'' Philips Semiconductors CEO Frans Van Houten told reporters here.

"The chipset and software is ready. We are talking to Indian companies for licensing out agreement,'' Mr. Van Houten stated.

A few months ago, U.S. chip-maker Texas Instruments (TI) had announced the global launch of its single-chip cell-phone solution that will cut handset costs by as much as 30 per cent to Rs. 1,000, making it the lowest priced handset that would be available in the country.

At present, this slot is occupied by Motorola's C 113 with its GSM handset having a price tag of Rs. 1,995.

Mobile penetration

Analysts say that handset makers are eager to expand in the high-volume segment of cheap mobile phones where the future growth of the sector is expected to take place. It would boost mobile penetration and help achieve the target of 250 million phones by December 2007.

Driven by lower operating costs, Philips will undertake more R&D work in India and plans to ramp up head-count by hiring nearly 900 professionals by 2007-end for the Philips Innovation Campus (PIC) here. PIC has now a headcount of 1,628 professionals.

Mr. Van Houten said Philips was "working on cutting-edge 65 nano metre SoC designs and libraries, IP modules and is investing heavily in its Nexperia Home and Mobile platforms using the skills of the India design team.''

It also planned to introduce a cost-effective LCD TV in the Indian market next year, he added. Philips opened its new campus here, heralding a stage-by-stage migration from its current location at Ulsoor to this upcoming five lakh sq. ft. state-of-the-art facility spread over 12.5 acres.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Current Account turns negative
Court asks Escorts Heart to maintain status quo on sale
illycaffe, Sterling to expand chain
Philips plans cheap mobile handsets
Midas' triple-play services offer
Havell's to focus on South
Sensex snaps rally
SEBI bars promoters, directors of KTL
Inflation inches up to 3.75 p.c.
ICAI for convergence of standards
RBI paper on priority sector lending
CellarStone Inc. acquires software firm in India
Royal Indian receives $1 b financing
International expo on medical equipment
KEC Intl bags order from Power Grid
Syndicate Bank renews ties with Oman exchange
Sudhir Jalan appointed AIMA President
Strand, Elan Pharma in research collaboration
Indian Chamber office-bearers
Sudhir Jalan appointed AIMA President
Tea Buyers Association
New CMD for Hind. Insecticides
BPL Mobile's new showrooms

Copyright © 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu