Philips is a company that loves making announcements of products that we won’t see for years. They have done it again. They have announced that they are working to develop a low-cost cellphone for the Chinese market by 2008. The phone will cost about $20.
Philips has invested heavily in research and development in Shanghai to develop the project. The motivation for the project is not just the massive Chinese market, but also the developing markets in India, South America and Eastern Europe. A huge portion of the world’s population doesn’t have a ton of money but is experiencing rapid economic growth. Philips is working to be able to meet their appetites.