Monday, February 14, 2005
Cell Phone Prices Falling?
On the heels of 3D positional sound, Texas Instruments Inc., which makes computer chips for more than half the world's cellular phones, said Monday it is testing a new technology that could drive down the price of high-end features.
The big semiconductor company said it has developed a single chipset that contains a modem and a processor on a single piece of silicon, replacing two components with one. Company officials say the new design will make it cheaper to build a phone that runs video at 30 frames per second or handles 3-D gaming, capabilities available now only on expensive phones. "We're going to drive them down into meat-and-potatoes phones that have the largest market share," said Doug Rasor, a marketing vice president at Dallas-based Texas Instruments. The new technology, called OMAP-Vox, would also use less power than current chips, the company said. Phone manufacturers are testing it and it could show up in store displays by the end of this year, Rasor said.
According to TI, it's technology should knock high-end phone prices down to $125 - $150, which would be much lower if the phone is subsidized with a calling plan. It will be interesting to see whether or not Qualcomm and Intel will let TI work in a vacuum.
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