ASIA
China : Royal Philips Electronics announced a new Design Center located
in Shanghai focused on enabling handset manufacturers to develop ultra
low-cost (ULC) phones for emerging markets.
The
Center is part of an overall initiative to address the growing consumer
demand for low-cost mobile communications in China, India, Africa,
South America and Eastern Europe by driving down total handset costs
below $15 by 2008.
The Center will
steer Philips’ ultra low-cost activities in China, working closely
with the European design facilities and the Bangalore-based Innovation
Campus to help Original Design Manufacturers, Original Equipment Manufacturers
and operators dramatically reduce costs and bring handsets to the
consumer for less than $20. The latest development equipment, local
technical support and hardware and software design expertise are all
part of the new center, ensuring customers can have design challenges
quickly addressed and speed their time-to-market.
“An untapped
global consumer base of 3.3 billion people in key markets represents
a huge opportunity for handset manufacturers and operators alike,”
said Frans van Houten, President & CEO, Philips Semiconductors.
“With Philips’ ultra low cost NexperiaTM Cellular System
Solutions and dedicated local support through the design center, manufacturers
can quickly develop affordable handsets to enable consumers to connect
to each other and to entertainment, information and services while
on the move.”
The Philips Nexperia
Cellular System Solution 5130 contains all the hardware, software
and peripherals necessary for building low cost mobile phones. Taking
it one step further, Philips has worked together with China TechFaith
Wireless Communication Technology Limited (“China TechFaith”)
(Nasdaq: CNTF), a handset application software and handset solution
provider based in China, to deliver a reference phone, thus giving
manufacturers access to a tried-and-tested, ready-to-produce handset
that has been engineered specifically to meet the needs of consumers
in emerging markets.
“Our partnership
with Philips will go a long way towards helping handset manufacturers
deliver tried-and-tested solutions that will enable them to rapidly
break into emerging cellular markets,” said Bob Huo, President
of China TechFaith. “Philips heritage of technological innovation,
consumer insight and customer support, coupled with our design know-how
and competitive costs, will help speed up the production of ultra-low-cost
handsets. In addition the significantly lower price points, excellent
quality and levels of functionality mean that the specific needs of
consumers in emerging markets like China and South America will be
realized.”
The reference
phone offers excellent RF reception and incorporates mono interference
cancellation technology to decrease the number of dropped calls in
areas with strong inter-basestation interference. This allows operators
to have more users on their network.
“The new
handset will help relieve the financial and operational risks manufacturers
face when deploying new, and often unproven, handsets in emerging
markets by reducing development and production costs, and improving
time-to-market,” stated Tony Lear, Senior Vice President and
General Manager, Greater China of Philips Semiconductors. “The
first commercially available ultra low-cost handsets based on the
Nexperia Cellular System Solution 5130 will offer voice, SMS and basic
multimedia capability, with a black and white screen, providing the
basic functionality and low cost desired by new subscribers in emerging
mobile phone markets.”
Production of
devices based on Nexperia Cellular System Solution 5130 can start
within three months after contract signature, with mass production
expected to take place in early 2006.